It is evident that there is a grave connection amid income inequality and precarious work. Importantly, differences in the wages amid the workers having a permanent contract as well as the ones that have temporary and unstable contracts are specifically high in the OECD countries amongst people earning low, whereas, there are similar earnings among people making high income. It is demonstrated by the studies that a shortage of mobility of job upward, particularly with the ones that have indefinite contracts, unstable jobs, and low wages, is aggravating inequality in income. (Morgan, Wood and Nelligan, 2013)
The connection amid the increasing inequality in income as well as precarious work connects with the presently ongoing hot debate on inequality. In the field of politics as well as economics, income inequality was not considered to be a significant point of discussion for a number of years. There was distributed hope generated by the competitive markets emerging from the growth of the economy. Inequality is toady considered as an issue, which might not be addressed by just the market factor. Various economists have recognised high income inequality to be one of the threats to upcoming well-being as well as sustainable growth of economy, which might not be resolved through the trickle-down effect.
When there is negligible access of individuals to secure employment, there are issues in securing loans that affect the housing market as well as children’s educational investments, which contribute to the lower revenues through tax and social security payments.
Since the creative industries experience a lot of income inequality, and there is a connection amid the income inequality and precarious work and even though several aspects indicate this as one of the prime reasons of precarious work in creative industries, there are people who are still not convinced and thus there is a continuous debate regarding this. This means that increase in the precarious is quite harmful to the economic development through increasing the health care costs, security as well as costs of social security and reduction of revenues through tax, however, the increase in income inequality brings negative effect in the sustainable growth in the long term. The precarious work brings about various advantages as well as disadvantages to the workers as well as the employers. However, it certainly has become the trend of today and is pacing up.