23510 Economic Inequality

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Subject handbook information prior to 2025 is available in the Archives.

UTS: Business: Economics
Credit points: 6 cp

Subject level:

Undergraduate

Result type: Grade and marks

There are course requisites for this subject. See access conditions.

Description

In this subject, students explore the foundations of our economic understanding of inequality, distinguishing between different concepts related to inequality – including equity versus equality; inequality of outcomes versus inequality of opportunity; relative and absolute poverty, and income inequality versus wealth inequality. In capturing the problem of economic inequality students examine different measures of inequality: globally, within Australia; and between Australia’s subpopulations including among Indigenous people, different genders and other marginalised groups. Students also analyse changes in inequality over time, as well as aspects of political economy, analysing the roles played by various factors/constraints (e.g., capital, labour, technological change, globalisation, unequal access to education, financialisation, and institutional pressures) in contributing to inequality. Students also delve into practical policy solutions which might help to mitigate the sources and consequences of inequality.

Subject learning objectives (SLOs)

Upon successful completion of this subject students should be able to:

1.	Discuss the relationships between equity, equality of outcomes and opportunities, and poverty
2.	Compare and contrast the ways in which inequality can be measured
3.	Describe how inequality has evolved over time within and between countries and sub-populations and its consequences for those countries and sub-populations
4.	Discuss the determinants of various types of inequality
5.	Analyse how various government policies may be used to mitigate against the various types of inequality and their consequences
6.	Critically evaluate the claim that rising inequality is inevitable

Contribution to the development of graduate attributes

This subject contributes to the development of the following graduate attributes:

Social responsibility and cultural awareness: Economic Inequality has been increasingly recognised as a critical global challenge, but it currently has insufficient prominence in the Business School’s offerings. Addressing economic inequality within the Business and Economics curricula will enhance UTS Business’ standing as an enlightened Business School, offering a socially responsible degree program.
Intellectual rigour and innovative problem-solving: Addressing inequality requires a deep understanding of its nature, determinants, extent and trends over time – as well the likely impact which various government policies can have on inequality within a complex global economic system. This subject will equip students with the tools to engage with these complex dimensions of a crucial policy-relevant topic.

Teaching and learning strategies

This subject is taught through a blend of online lectures, resources, self-directed study and tutorials.

Pre-class activities: Before class, students will read material and complete tasks provided to them on Canvas.

Tutorials/seminars: Students will discuss questions arising from the online material and case studies. Tutorials will also provide opportunities for group discussion of the Canvas material, individual presentations, class discussions and other tutorial tasks.

Content (topics)

Foundational concepts relating to inequality and poverty
Measuring inequality and examining its consequences
Wage inequality
Evolution of inequality within Australia over time
Global poverty and inequality
Political economy and distribution
Inequalities between capital and labour
Inequality between different subpopulations within Australia
Effects of government policies and intervention

Assessment

Assessment task 1: Online Test (Individual)*

Objective(s):	This addresses subject learning objective(s): 1 and 2
Weight:	30%
Length:	90 minutes
Criteria:	Communicate satisfactory understanding of most fundamental principles Ability to comprehend and analyse information and data *Note: Late submission of the assessment task will not be marked and awarded a mark of zero.

Assessment task 2: Inequality Policy Presentation (Individual)*

Objective(s):	This addresses subject learning objective(s): 3, 4 and 5
Weight:	40%
Length:	5-10 minutes, live presentation to the group
Criteria:	Depth of analysis of a specific inequality problem Discussion of causes and consequences of inequality for the specific group/aspect identified Ability to analyse and explore implications and potential policy solutions *Note: Late submission of the assessment task will not be marked and awarded a mark of zero.

Assessment task 3: Group Policy Taskforce Report (Group)

Objective(s):	This addresses subject learning objective(s): 4, 5 and 6
Weight:	30%
Length:	1,000 words
Criteria:	Depth of analysis of the determinants of inequality Appropriacy and feasibility of real-world policy solutions, supported by empirical evidence Comprehensive and holistic assessment of inequality policy issues, including the extent to which policies can ensure rising inequality is not inevitable

Minimum requirements

Students must achieve at least 50% of the subject’s total marks.

Required texts

Deaton, A (2024), The Great Escape: Health, Wealth, and the Origins of Inequality.

Productivity Commission (2018) Rising Inequality: A stocktake of the evidence
https://www.pc.gov.au/research/completed/rising-inequality/rising-inequality.pdf

World Inequality Report (2022), chapter 2: “Global inequality from 1820 to now: the persistence and mutation of extreme inequality” https://wir2022.wid.world/www-site/uploads/2021/12/WorldInequalityReport2022_Full_Report.pdf

Productivity Commission (2024), Review of the National Agreement on Closing the Gap, vol. 1, Study Report https://www.pc.gov.au/inquiries/completed/closing-the-gap-review/report/closing-the-gap-review-report.pdf

United Nation Department of Economic and Social Affairs (2023), Progress on the Sustainable Development Goals: the Gender Snapshot 2023, https://www.unwomen.org/sites/default/files/2023-09/progress-on-the-sustainable-development-goals-the-gender-snapshot-2023-en.pdf

References

Atkinson, Anthony (2015) Inequality: What Can Be Done? Harvard University Press

Piketty, Tomas (2014) Capital in the Twenty-First Century

Deutscher & Mazumder (2020) ‘Intergenerational mobility across Australia and the stability of regional estimates’ Labor Economics, 66: 101861 https://doi.org/10.1016/j.labeco.2020.101861

Miles Corak (2013). “Income Inequality, Equality of Opportunity, and Intergenerational Mobility.” Journal of Economic Perspectives. Vol. 27 No. 3, Pages 79-102.

Claudia Goldin and Lawrence Katz: (2008) The Race Between Education and Technology, Harvard University Press

Handbook of Income Distribution, Edited by Anthony B. Atkinson and François Bourguignon, Volume 2 (2015)

Cowell, F. (2011). Measuring inequality. Oxford University Press, Incorporated.