Improvement in the living standard of individuals in society is the basic notion
of development, and it is not attainable with only an increase in the gross domestic
product of the nation. Without knowing the income distribution, economic growth
would be insufficient to achieve development. The nations experiencing noteworthy
inequalities in the possession of assets only arrive at a lower level of growth
[McKay (2002)]. Increasing disparities in the distribution of income and opportunities
to get income, like access to education and health, and ownership of land and
capital, lead to poverty in relative and absolute terms. Hence, it significantly contributes
in social turmoil and misdeeds and imposes limits on nations to achieve
sustainable development [Zagorski, et al; (2010)]. Many nations are currently placing
a high priority on advancing efforts to reduce disparities as a key policy concern.
This is partially because of concerns that persistent disparities in the allocation of
economic gains might exacerbate class divides, spark social unrest, and ultimately
result in political instability. Thus, the most critical challenge of this century is to
evade this inequality trap. Interest of the economists to combat this challenge can
be attributed to Sustainable Development Goal 1 and 10, which seeks to eradicate
poverty for all people ubiquitously and lessen inter and intra countries inequalities.
