IB Econ Inequality

Organised Post Index

Measuring Economic Inequality

Gini Coefficient Explained - Calculating Income Distribution Step-by-step guide to understanding and calculating Gini coefficients. From 0 (perfect equality) to 1 (maximum inequality) - what the numbers really mean.

Gini coefficient calculation | Income distribution measurement | Inequality index interpretation | Perfect equality vs maximum inequality | International Gini comparisons | Data collection challenges

Lorenz Curve Construction - Visualizing Income Distribution How to draw and interpret Lorenz curves showing cumulative income distribution. Understanding the relationship between Lorenz curves and Gini coefficients.

Lorenz curve construction | Cumulative income percentage | Population percentage analysis | Line of equality significance | Curve interpretation methods | Graphical inequality representation

Alternative Inequality Measures - Beyond the Gini Coefficient 90/10 ratios, Palma ratios, and other inequality measures. Why economists use different methods and what each reveals about income distribution.

90/10 income ratio | Palma ratio advantages | Percentile ratio analysis | Top 1% income share | Inequality measure comparison | Statistical reliability assessment

Types and Causes of Inequality

Income vs Wealth Inequality - Understanding the Difference Why wealth inequality is typically much higher than income inequality and how inheritance and capital gains create persistent disparities.

Income inequality causes | Wealth accumulation mechanisms | Inheritance impact | Capital gains vs wages | Asset price inflation | Intergenerational wealth transfer

Technology and Skill-Biased Change - Winners and Losers How automation and digitalisation increase demand for high-skilled workers while reducing opportunities for middle-skilled jobs.

Skill-biased technological change | Automation impact on wages | Digital divide effects | Education premium increase | Middle-skill job polarisation | Future of work implications

Globalization and Inequality - Trade-offs and Tensions Why globalization reduces inequality between countries but can increase inequality within countries. Understanding the Kuznets curve hypothesis.

Globalization inequality effects | Between-country vs within-country inequality | Trade impact on wages | Kuznets curve theory | Development inequality trade-offs | International convergence trends

Education and Human Capital

Education Premium - Returns to Schooling and Skills Why university graduates earn more and how the education premium has changed over time. The role of human capital in income distribution.

Education wage premium | Human capital theory | Returns to education | Skills shortage impact | Credential inflation | Education inequality perpetuation

Skills Mismatch - When Education Doesn't Match Jobs Why having the wrong skills can lead to unemployment and lower wages. The importance of vocational training and lifelong learning.

Skills mismatch causes | Vocational vs academic education | Labor market flexibility | Training program effectiveness | Career transition support | Lifelong learning importance

Government Policies and Redistribution

Progressive Taxation - How Tax Systems Reduce Inequality Understanding tax progressivity and its impact on income distribution. From income tax to wealth taxes and their effectiveness.

Progressive tax structure | Tax progressivity measurement | Income redistribution effects | Wealth tax debate | Tax avoidance impact | Optimal taxation theory

Transfer Payments and Welfare Systems - Direct Redistribution How unemployment benefits, child allowances, and social security reduce inequality. Comparing different welfare system designs.

Transfer payment types | Welfare system design | Means testing vs universal benefits | Poverty trap effects | Social safety net adequacy | Benefit targeting efficiency

Minimum Wage Policy - Wage Floors and Inequality The debate over minimum wages: do they reduce inequality or increase unemployment? Evidence from different countries and regions.

Minimum wage inequality effects | Employment impact debate | Monopsony theory | Regional wage variation | Living wage concept | Policy effectiveness evaluation

International Perspectives and Case Studies

Nordic Model - Equality with Prosperity How Scandinavian countries achieve low inequality while maintaining high living standards. Lessons for other developed economies.

Nordic equality model | Social democratic policies | High tax tolerance | Universal welfare systems | Labour market coordination | Equality-efficiency trade-offs

US Inequality Trends - Growing Disparities Since 1970s Why American inequality has increased dramatically and what policies might reverse the trend. The role of unions, education, and technology.

US inequality increase | Union membership decline | CEO compensation growth | Education funding disparities | Healthcare cost impact | Policy reversal options

China's Development and Inequality - Growth with Disparities How rapid economic growth increased inequality in China and current government efforts to create "common prosperity."

Chinese inequality trends | Rural-urban income gaps | Regional development disparities | Hukou system effects | Common prosperity policies | Development inequality patterns

Latin American Inequality - Highest in the World Why Latin America has the highest inequality globally and what countries like Brazil are doing to address it. The role of education and social programs.

Latin American inequality causes | Historical inequality persistence | Social program effectiveness | Education access barriers | Informal economy impact | Conditional cash transfers | Corruption

Effects and Consequences of Inequality

Economic Growth and Inequality - The Relationship Debate Does inequality help or hurt economic growth? Understanding different theoretical perspectives and empirical evidence.

Inequality growth relationship | Capital accumulation effects | Demand-side impact | Social mobility consequences | Investment in education | Political economy factors

Social Mobility - Breaking the Inequality Cycle How income inequality affects children's life chances and what policies can improve social mobility across generations.

Intergenerational mobility | Great Gatsby curve | Early childhood intervention | Education equality importance | Neighborhood effects | Social capital role

IB Economics Exam Application

Inequality Essay Questions - Analysis and Evaluation Framework How to structure inequality essays including causes, consequences, and policy evaluation. Using real-world examples effectively.

Inequality essay structure | Policy evaluation criteria | Stakeholder analysis | Trade-off identification | Contemporary example usage | Evaluation depth techniques

Inequality Data Interpretation - Understanding Statistics and Trends How to analyze inequality data in Paper 1 questions, including trend analysis and international comparisons.

Inequality data analysis | Trend interpretation | International comparison methods | Statistical significance | Data limitation recognition | Policy implication drawing

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