This paper provides a summary of current theories and relevant studies on income inequality conducted in the last 10 years. Excessive income inequality is one of the most painful and controversial topics for modern society. A person with high self-awareness has the ability to anticipate his real possibilities, the meanings of the “I”, manifested as a result of actions, and the inequality that generates deprivation among significant groups of the population causes a sense of helplessness, the inability to improve one’s situation, and adversely affects the socio-psychological state of the individual and society. In this case, it not only serves as a source of psychological tension, but also deforms the motivation for social behaviour.
Key words: economic aspects, income inequality, psychological aspects, social aspects