1. Corruption: Defined as those actions by government agents that sell what they do not have a right to sell, such as subsidies, preferential regulations and others, which disproportionally affects the poor.
2. Cronyism: This is similar to corruption but usually “legal.”
3. Regulatory barriers: This is in the form of high capital requirements, mountains of red tape, and exorbitant license fees, especially in the areas where the poor enter the market.
4. Government schools: In “This Wonderful Tree,” James Tooley, of the E.G. West Centre, documents how in several nations the poor prefer to send their children to humble, but more efficient, private schools. Nobel Laureate Gary Becker, of the Becker Friedman Institute, argues that a big improvement in high school graduation rates would reduce inequality of earnings.
5. Monetary Policy: Ralph Benko, a Forbes.com contributor, recently wrote a column on inequality where he took as a given that major players in the banking sector were being unjustly enriched by the current monetary policy.