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Inequality
Outline
I. Inequality within the US
II. Global Inequality
III. The importance of Equality
Income Inequality within the US
                       Percentage of Total Income Earned by the Top 10 Percent
                                      United States (1970-2009)
                50.0


                47.1


                44.3
   Percentage




                41.4


                38.6


                35.7


                32.9


                30.0
                   1970           1980          1990          2000          2010
                                                Year
CEO and Worker Pay
            CEOs' pay as a multiple of the average worker's pay, 1960-2007




Source: Domhoff 2011
Wealth Concentration in the United States

         Distribution of net worth and financial wealth

                        Top 1 percent      Next 19 percent   Bottom 80 percent
1983               33.8%                 47.5%               18.7%
1989               37.4%                 46.2%               16.5%
1992               37.2%                 46.6%               16.2%
1995               38.5%                 45.4%               16.1%
1998               38.1%                 45.3%               16.6%
2001               33.4%                 51.0%               15.6%
2004               34.3%                 50.3%               15.3%
2007               34.6%                 50.5%               15.0%


 Source: Domhoff 2011
Financial Wealth in the United States

                        Top 1 percent    Next 19 percent   Bottom 80 percent
1983              42.9%                 48.4%              8.7%
1989              46.9%                 46.5%              6.6%
1992              45.6%                 46.7%              7.7%
1995              47.2%                 45.9%              7.0%
1998              47.3%                 43.6%              9.1%
2001              39.7%                 51.5%              8.7%
2004              42.2%                 50.3%              7.5%
2007              42.7%                 50.3%              7.0%

 Source: Domhoff 2011
Wealth and Financial Wealth Distribution 2007




Source: Domhoff 2011
Every group except the top 1% had a smaller share of income in 2007 than they did in
1979, or just an equal share in the case of the 81st-99th percentile group. That means
the gains in the top quintile are all concentrated in the top 1%.
Social Mobility
Inequality and Health
Inequality and Mental Health
Inequality and Drug Abuse
Inequality and Education
Inequality and Imprisonment
Inequality and Obesity
Inequality and Social Mobility
Inequality and Trust and Community Life
Inequality and Violence
Inequality and Child Well-Being
Distribution of Global Poverty: 1970




 http://www.gapminder.org/downloads/human-development-trends-2005/
Distribution of Global Poverty: 1970




 http://www.gapminder.org/downloads/human-development-trends-2005/
Distribution of Global Poverty: 2000




 http://www.gapminder.org/downloads/human-development-trends-2005/
Causes of Global Mortality




2/6/11
Map of World Happiness




Note: The happiest country on earth is Denmark!
Inequality within countries
Distribution of income by region in
                2000
Gini Coefficient
• Gini Coefficient
 is a common
 measurement of
 income inequality,
 ranging from 0 to 1,
 where 0 indicates
 equal distribution,
 and 1 indicates
 complete inequality
Global Map of Inequality within nations
Life expectancy vs. GDP per person
               2010
Kuznets Curve Refuted
 Rising Inequality within high income nations, and
 falling inequality within low income nations
Inequality trends in rich nations
                                                Gini coefficient
                               Country          percentage change
                                                (1990-2006)

   Inequality in the US and   Austria          -10.7

    UK has increased           Belgium          20.7

    dramatically since the     Denmark          -3.4
                               Finland          20.0
    1970s,                     France           -5.9
   And rising inequality is   Germany          5.1

    not offset by greater      Greece           2.1
                               Ireland          -2.4
    upward mobility and        Italy            5.6
    change between             Luxembourg       12.1
    economic categories.       Netherlands      -2.3

   But, this does not         Norway           10.8
                               Portugal         5.5
    reflect a more general     Spain            2.3
    trend...                   Sweden           3.5
                               Switzerland      -10.7
                               UK               2.7
                               European Union   0.0

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Inequality Charts (US and Global)

Notas del editor

  1. How is ‘happiness’ measured? Life satisfaction is typically measured with the following question:All things considered, how satisfied are you with your life as a whole these days?
  2. The straight line indicates perfect equality in the distribution of income: e.g. 10% of the population receives 10% of the income, 20% of the population receives 20% of the income, etc. The area between the straight line representing perfect equality and the curved line (called a Lorenz curve) representing actual income distribution is known as the Gini coefficient. The farther the line is from the straight line (45 degree angle), the larger the income inequality, and thus, the larger the Gini coefficient.
  3. There are three data points, representing low income, middle income, and high income countries, in the years 1970 and 1990. We see that the distance between the three groups has remained relatively stable. We also see that, inequality within low income and middle income nations has declined slightly, whereas in high income nations, economic growth has exacerbated economic inequalities. It is difficult to assess the Kuznets curve hypothesis with this data. The first two data points (low and middle income countries) might be seen as confirming the Kuznets curve, so long as we assume that prior industrialization has increased inequality there, over and above what it used to be, which is questionable. The trend for the high income nations, however, is not consistent with the Kuznets Curve. The overall pattern for each year does resemble a Kuznets Curve, because inequality is higher for middle income nations