23510 Economic Inequality
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Credit points: 6 cp
Subject level:
Undergraduate
Result type: Grade and marksThere are course requisites for this subject. See access conditions.
Description
This subject explores the extent of different measures of inequality: globally, within Australia, and between subpopulations including Indigenous people, and changes over time. It covers how inequality is measured, distinguishing between inequality of outcomes and inequality of opportunity. Economic theories which attempt to explain inequality are explored, emphasising the roles of capital, labour, technological change, globalisation, education, financialisation, and institutions. Students explore a range of government policy levers for addressing inequality.
Subject learning objectives (SLOs)
| 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 |
| 4. | Discuss the determinants of various types of inequality |
| 5. | Analyse how various government policies may affect inequality of various types |
| 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 recognized as a critical global challenge, but it currently has insufficient prominence in the Business School’s offerings. Any socially responsible degree program in Business or Economics should address economic inequality.
- Intellectual rigour and innovative problem-solving: Addressing inequality requires a deep understanding of its determinants, it’s nature, extent and trends over time, as well the likely impact of various government policies within a complex global economic system. This subject will equip students with the tools to engage with this complex 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: Students will discuss questions arising from the online material and case studies. Tutorials will also provide opportunities for group discussion of the weekly material and tutorial tasks.
Content (topics)
- Distributional issues in economic thought
- Measuring inequality and examining its consequences
- Evolution of inequality globally, and in Australia
- Inequality between capital and labor
- Wage inequality
- Inequality between subpopulations
- Effects of government interventions
Minimum requirements
Students must achieve at least 50% of the subject’s total marks.
Required texts
Fisher-Post, M., Herault, N. & Wilkins, R. (2022) ‘Distributional National Accounts for Australia’ 1991-2018 Melbourne Institute Working Paper No. 17/22, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4253204
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
Closing the Gap Reports
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.