Yin1Hongjie Yin (Blake), 1408480Econ 197Assignment 4Topic Proposal and Annotated BibliographyIncome inequality is likely in U.S economy is less likely to decrease because of the resultant forces of many factors. Those factors include racial diversity, demographic distribution, and distribution of education. These factors are not only the characteristics defining U.S but also the reasons contributing to income inequality. The U.S. society is famous for its racial diversity. Observing from statistics, income differences among races are obvious. The differences of income among races contribute to income inequality, and racial income inequality causes reducing trust thus further increases racial fragmentation and causes further increase in income inequality. Also, the unique demographic distribution and aging factor enlarge income inequality. The State’s spreading-out demographic distribution increases income inequality because people at different age earns different levels of income when given other factors are equal. Therefore, income inequality tends to grow in U.S economy.Source 1: Park, Gowun. 2017.Three essays on inequality in the united states Available from EconLit. (1983784999; 1677467). Retrieved from https://search-proquest-com.oca.ucsc.edu/docview/1983784999?accountid=14523This source derives the reasons behind income inequalities using U.S. economy as a prototype. First essay divides income inequality into several components such as wage inequality, interest inequality, ect. Second essay focuses on factors that contribute to wageinequality and third essay relates the income inequality to characteristics of the U.S society. This source provides facts, statistics, and analysis of income inequality of U.S economy. It is an information provider where many information can be used as evidencesto support my thesis. The source provides plenty of factors that could result in income inequality such as retirement income and self-employment income. Those are valuableYin2components that I could use when developing arguments. This source can be used as a toolbox that I could choose the information I needed and put them in use.Source 2: Bureau of Census. "Mean Earnings By Highest Level Of Education Or Degree And Selected Characteristics: 2016 [By Age, Sex, And Race]." ProQuest Statistical Abstract of the U.S. 2018 Online Edition. Ed. ProQuest, 2018. Web: ProQuest Statistical Abstract 07/18https://statabs-proquest-com.oca.ucsc.edu/sa/docview.html?table-no=254&acc-no=C7095-1.4&year=2018&z=A6DEFF473A4D8B7E5B5FD747822E0C8BA32A020A This source is a table that depicts the position correlation between wages and education levels. Notably, the table displays several groups such as aging, gender and race. In this way, it is obvious to compare the wage differences among different ages, genders, and races at a certain education level. Also, table shows the mean wage of each group. This source provides numerical evidence to support the income inequality among demographyand races. This source helps when adding data and statistic of real U.S demographic distribution and racial distribution. Also, the source reflects the spreading-out distributionof education could also increase income inequality.Source 3: Tesei, A. (2014). Trust, racial fragmentation and income inequality: New evidence from the U.S CESifo Group Munich, CESifo Working Paper Series: 4718. Retrieved from https://search-proquest-com.oca.ucsc.edu/docview/1531424186?accountid=14523This source uses studies to support the assertion that racial income inequality reduces trust. Low trust would result in further racial fragmentation and further racial income inequality. Therefore, this source tells a story of endogenous mechanism of income inequality. This can be used as an evidence to support increasing trend of income inequality. The studies in the source can be cited as a convincing evidence.Source 4: Apergis, N., Dincer, O., & Payne, J. E. (2011). On the dynamics of poverty and income inequality in US states. Journal of Economic Studies, 38(2), 132-143. Retrieved from https://search-proquest-com.oca.ucsc.edu/docview/886915660?accountid=14523 The source describes the bidirectional relationship between poverty and income inequality. It incorporates studies of multivariate framework using data set of 50 states in the U.S to prove the endogenous increase of income inequality. This source could be usedas evidence to support increasing trend of income inequality in U.S. economy. The bidirectional relationship between poverty and income inequality can be used as the argument to support my