Summary
Summary Chapter 3: Levels and Trends
- Course
- Institution
summary of chapter 3 of inequality & social exclusion (master course taught by professor Sarah Marchal)
[Show more]
Seller
Follow
marsepein
Reviews received
Content preview
1Chapter 3: Levels and Trends ..............................................................................................................3
1. Levels ..........................................................................................................................................3
1.1. In most European countries, inequality is more pronounced among the working aged .........3
1.2. Wealth inequality .................................................................................................................3
1.2.1. Wealth is much more unequally distributed ...................................................................3
1.2.2 Large country differences in wealth concentration .........................................................4
1.2.3. The portfolio of household wealth .................................................................................4
1.2.4. The decomposition of wealth .........................................................................................5
1.2.4. Correlation between household wealth and income ......................................................7
A) What? .............................................................................................................................7
B) In Belgium .......................................................................................................................8
............................................................................................................................................8
2. Trends .........................................................................................................................................8
2.1. Within country income inequality: Long term trends in the OECD area .................................8
A) Income inequality increased in most, but not all OECD countries .....................................8
B) Changes in income inequality were not only about the top ..............................................9
C) Episodes of inequality changes ...................................................................................... 10
D) Shares of very high incomes increased, in some countries by a lot ................................ 10
E) In some countries, 20% and more of long-term income growth has been captured by the
top 1% ............................................................................................................................... 11
F) Even in countries where growth of top 1% was moderate, the very top shares have
increased a lot ................................................................................................................... 11
2.2. Within country wealth inequality........................................................................................ 12
2.2.1. Top 10% net personal wealth share ............................................................................. 12
2.2.2. Within country wealth inequality is driven by the top 1% ............................................. 12
2.2.3. Wealth concentration in France ................................................................................... 13
2.2.4. The very long term trend of increasing wealth concentration at the top continued
during the past decade, with a few notable exceptions ......................................................... 13
2.3. Global income inequality .................................................................................................... 13
2.3.1. Introduction: Three concepts of inequality................................................................... 13
2.3.2. Milanovic: Global inequality – Population-weighted inter-country inequality –
Unweighted inter-country inequality ..................................................................................... 14
2.3.3. Global vs US-inequality ................................................................................................ 15
2.3.4. Location vs Class component ....................................................................................... 15
A) What? ........................................................................................................................... 15
B) Graphical ....................................................................................................................... 15
2.3.5. Citizenship premium vs Citizenship penalty.................................................................. 16
, 2
A) What? ........................................................................................................................... 16
B) Graphical ....................................................................................................................... 16
2.3.6. The elephant curve ...................................................................................................... 18
A) What? ........................................................................................................................... 18
B) Graphical ....................................................................................................................... 19
2.3.7. The global 1% .............................................................................................................. 20
2.3.8. The elephant who lost its trunk .................................................................................... 20
, 3
Chapter 3: Levels and Trends
1. Levels
1.1. In most European countries, inequality is more pronounced among the working aged
The gini coefficient lies higher for the working aged. This is because:
• More wage disparities on the labour market
• Part-time and temporary work pays less and offers fewer benefits than fulltime work
• People in the working-age group experience different rates of career progression, with some
moving up quickly and others remaining in lower positions
• Many European countries have relatively generous pension systems thus providing a more
equal income distribution among the elderly
• The elderly benefit more from social transfers such as healthcare subsidies
• Elderly individuals often have more accumulated assets
In a few countries the gini coefficient is higher for the elderly population (Mexico, Chile, Korea,
Lithuania, the US, Australia, New Zealand). This is because:
• The pension systems in some countries is not designed to equalize incomes among the
pensioned
• Countries like Chile have highly privatized pension systems
• In some countries labour market participation is still high among the elderly
1.2. Wealth inequality
1.2.1. Wealth is much more unequally distributed
This table compares the share of income and
wealth going to different parts of the income and
wealth distribution in 2019 for the OECD and the
USA:
• The top 10% in the USA hold a much higher
proportion of wealth (79%) compared to the
OECD average (52%).
• Wealth distribution is more unequal than income distribution, especially in the USA.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller marsepein. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.86. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
59523 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now