The Spirit Level

Distribution of income in a society  mainly depends on two factors.The first one is how the structure of the organizations, balance of powers,culture,mentality,commonly accepted ethic rules are shaped. Those things don't change from  one day to another ,but it happens in a certain period of time except radical decisions by revolutionaries.Even in such cases, people and society don't change,but they are forced to behave as it is dictated to them and one day when the regime changes, they start to behave immediately as they were doing before that period.The second one is related with scarcity of the production factors. If there is lack of one production factor, its price increases or vice versa.For example, in developing countries, there is no enough capital for investment,but abundance of labor and so that capital is more valuable and wages are lower comparing to developed countries.At this point, this question may come to some of yours'minds:why do developed countries invite investors recently too? the reason is very clear.In global world, investors of the developed countries are moving to emerging markets due to cheap labor and land prices and the remaining amount of capital is still enough for new investments in mother countries. Let me explain you a real case: there are many foreign investors in Albania and also some Albanian people those live in other countries, but do business in Albania.Why? Do they love Albania too much? of course , not!Becasue, there are no such high profit margins in their countries and in the countries where Albanian businessmen live.
There is a very interesting contrast in the world: people of developing countries still continue to have more children than those in developed countries-even immigrants who live  in developed  countries follow the same way and leads to increase slightly population of those countries otherwise it will decrease-and  so that cause to decrease their own values by this way.The result is lower salaries,poor living condtitions,more unhappiness,more crime, more unhealthy and illiterate generations.They are preparing an enormous and cheap production factor i.e. labor force for investors in the future.