A poverty-inequality trade off?

The idea that developing countries face a trade off between poverty and inequality has had considerable influence on thinking about development policy. The experience of developing countries in the 1990s does not, however, reveal any sign of a systematic trade off between measures of absolute poverty and relative inequality. Indeed, falling inequality tends to come with falling poverty incidence. And rising inequality appears more likely to be putting a brake on poverty reduction than to be facilitating it. However, there is evidence of a trade off for absolute inequality, suggesting that those who want a lower absolute gap between the rich and the poor must in general be willing to see lower absolute levels of living for poor people.Martin Ravallion: These are the views of the author, and need not reflect those of the World Bank or any affiliated organization.     

Putting old heads on young shoulders: helping social work students uncover the neoliberal hegemony

This paper explores the suggestion that younger students and social workers are more accepting of neoliberal social work practices than their older counterparts, understanding social problems more readily as failings of individual behaviour rather than as produced by societal forces such as inequality, poverty, and punitive social policy. The suggestion is made that the acceptance of a hegemonic view of people in poverty and other difficulties, which is simple and reductionist, and therefore, easy to grasp, can only be challenged by sophisticated critical thinking. Assignment results from two modules within one social work programme which significantly correlate marks attained and student age are considered in the light of the suggestion that younger students are struggling with critical thinking, and therefore, with deconstructing the neoliberal hegemony.     

Restructuring for Whom? Race,Class, Gender,and the Ideology of Invisibility

This paper examines how changes resulting from economic restructuring affect views of racial inequality across different race, class, and gender groups. First reviewing some of the consequences of restructuring for different race, class, and gender groups, the paper also reviews research documenting the different views of racial inequality held by dominant and subordinate groups. The paper concludes by examining how race-blind ideologies affect discussions of race and multiculturalism and suggests that race-blind thinking has thwarted teaching about structural racism.     

The Sociology of Inequality and the Rise of Neo-Inequality

Sociologists’ conventional approaches to understanding inequality and poverty do not adequately capture the causes, extent, and consequences of new forms of inequality that have emerged in the late 20th and early 21st centuries. Following a critique of conventional sociological theorizing on inequality and stratification, a synthesis of new sociological/social psychology thinking on inequality, and the use of case study data from Detroit, I explore, describe, and explain how neo-liberal ideology, neo-liberal systems of governance, and neo-liberal policies have created the neo-inequalities that now define our age.     

The effect on inequality of changing one or two incomes

We examine the effect on inequality of increasing one income, and show that for two wide classes of indices a benchmark income level or position exists, dividing upper from lower incomes, such that if a lower income is raised, inequality falls, and if an upper income is raised, inequality rises. We provide a condition on the inequality orderings implicit in two inequality indices under which the one has a lower benchmark than the other for all unequal income distributions. We go on to examine the effect on the same indices of simultaneously increasing one income and decreasing another higher up the distribution, deriving results which quantify the extent of the ‘bucket leak’ which can be tolerated without negating the beneficial inequality effect of the transfer. Our results have implications for the inequality and poverty impacts of different income growth patterns, and of redistributive programmes, leaky or not, which are briefly discussed.     

Not all luck is created equal: Sources of income inequality and willingness to redistribute

Despite steadily rising inequality in the US over the last few decades, demand for increasing tax rates and redistribution has not increased. A growing literature argues that one reason for this is that people might perceive inequality to be fair. This literature has documented that Americans tend to perceive economic inequality stemming from merit as being fair and inequality stemming from luck as unfair. However, “lucky breaks” in the real world do not necessarily come from a lottery or random chance but from the actions of the government favoring a “lucky” few. People might be more willing to redistribute if it compensates those negatively affected by government action. Using an online experiment we show that luck stemming from the action of a government-like actor influences individuals’ desire to redistribute earnings making them more likely to favor redistribution than in instances where inequality is caused by merit or by random luck.     

Exploring the Concepts of Recognition and Shame for Social Work

Recognition and shame are both concepts that potentially offer social workers a structure to build practice on; two states experienced by both social workers and service users. ‘Recognition’, within social, political and economic thought, has been established as a field in which inequality and exclusion can be analysed. Social work theorists have also made inroads into exploring its reach. ‘Shame’ in twentieth century and contemporary sociological and psychoanalytical accounts, is understood as a force in limiting human agency, well-being and capacity This paper briefly outlines some of the defining ideas in circulation in relation to recognition and shame, and then briefly considers how psychoanalytical and contemporary social structural analysis builds on this, making links to contemporary social work thinking throughout. The paper also specifically considers some of the uses of recognition and shame for thinking about social worker and service user ‘well-being’, and the connections, through both the relational and the socio-political, which inflect social work practice.     

Dynamics of earnings inequality among female-headed households in the United States

The labor market in the United States has gone through a number of noticeable changes, one of which is a rise participation of women in the labor force. A number of studies have investigated the consequences of these changes on wage, income, or earnings inequality in a static framework. This study investigated the consequences of these changes on earnings inequality over time. The earnings inequality among male- and female-headed households is compared. I further considered the factors that might have influenced the earnings inequality among female-headed households. Short-term and long-term inequality was measured from 1978–1986. It was found that short-term inequalities generally have a rising trend and contain transitory components; long-term inequalities declined in the early years because of a smoothing of transitory components; and within-group inequalities are the principle determinant of overall inequality. Education, race, age, and marital status were considered as possible contributors to the overall inequality. Education and race were shown to be the most influential factor explaining inequality among female-headed households and explained a third of the observed inequality. Earnings stability profiles reveal the existence of permanent and chronic inequality.     

Reproducing Inequality in Sociology

This essay discusses some mechanisms reproducing inequality in the discipline of sociology. I argue that credit for communally produced ideas accrues to individual and that the discipline is governed by a kind of “racial contract” partially governing which ideas and individuals are included. As a discipline centrally concerned with inequality and stratification, I argue sociologists should employ greater reflexivity when thinking about how disciplinary practices reproduce structures we typically critique in other contexts.     

Rethinking empirical approaches to racial segregation

Within empirical approaches to racial residential segregation, there has been a tendency to draw on the work of or influenced by Robert E. Park and his ecological hypothesis to explore social and spatial relations between members of different ethnic and racial groups, thus framing research within a race relations paradigm. This has promoted an analysis which naturalizes racial differences but which also sidelines structural considerations. In turn this approach has also fed into political discourses on segregation, at times supporting more reactionary positions. This paper seeks to address this debate by considering whether emphasis on minority ethnic concentration sidelines the more pertinent issue of concentration in deprived areas, suggesting that neighbourhood deprivation as a measure can be more easily aligned with structural conditions which have influenced the settlement and historical experience of many ethnic minority communities. Specifically, I consider the extent to which a measure of neighbourhood deprivation is more important than the ethnic composition of an area for thinking about the distribution of inequalities in unemployment (as one example of socio‐economic inequality). Using multilevel logistic regression I find neighbourhood income deprivation to be more important than levels of co‐ethnic concentration for explaining ethnic differences in unemployment. The findings imply that neighbourhood deprivation is significantly more important for considering inequalities in unemployment for ethnic minorities than the ethnic composition of an area.     

Economics,psychotherapy and politics

The paper explores the application of ideas derived from psychotherapy to questions of economic and social policy. It is argued that disputes concerning human nature underlie many debates on economic theory. Class is reviewed from internal and emotional perspectives. Psychological obstacles to the achievement of economic inequality are explored and ways of overcoming them critically discussed. Particular attention is paid to the operation of economic sadism in the behaviour of individuals and societies. A range of possible gender differences in relation to money is reviewed. Inherited wealth is explored from the perspective of ‘therapy thinking’. The paper proposes that we reconsider what is deemed to be realistic and what is deemed to be (hopelessly) idealistic in thinking about economics. The paper concludes by proposing a deeper discussion of the problematic of sacrifice in connection with sustainable economics.     

Trend Analysis of Anticipated Lifetime Income Inequality among Post‐war Japanese Youth

This study aims to measure the inequality of anticipated lifetime income and the inequality of annual income among the younger generation (24–29‐year‐old men), and to examine any trends that can be found in terms of inequality between 1955 and 2005 in Japan. Anticipated lifetime income is defined in this study as the present value of the total anticipated annual income that one is likely to earn each year between the ages of 24 and 59 years, assuming that there is no intragenerational class mobility. The anticipated lifetime income for each young male is estimated using the Social Stratification and Social Mobility Survey dataset, which is a Japanese national cross‐sectional survey of social stratification and social mobility. An inequality in the anticipated lifetime income can be regarded as an “inequality of outlook” among the younger generation. As a result of this analysis, it was found that the Gini coefficient, the most general measurement of income inequality, had significantly increased for anticipated lifetime income between 1995 and 2005. At the same time, the gap between the Gini coefficient of anticipated lifetime income and that of annual income had narrowed. It is suggested that “inequality of outlook,” which cannot be easily identified using a superficial index, has increased significantly.     

A Research Note on Family and Income Distribution: The Equalizing Impact of Married Women's Earnings in Metropolitan Brazil*

Using the 1985 Brazilian Annual Household Survey (PNAD), this study analyzes the extent to which the labor force participation of married women influenced familyincome inequality. The marginal impact on family earnings is decomposed into two components, one generated uniquely by differences in earnings inequality between spouses and another produced by imperfect assortive mating on spouses' earnings. Results show that the correlation among spouses' earnings is significantly less than one (0.4), and that the level of earnings inequality is more than 50 percent higher among wives than husbands. Because these forces are offsetting, wives' labor income has a negligible impact on family-income inequality in Brazil. The results demonstrate the importance of isolating the influence of imperfect assortive mating from that due to inequality in earnings between men and women.     

Inequality orderings and unit consistency

The paper examines the implications of the newly proposed unit consistency axiom for partial inequality orderings. We first show that some intermediate Lorenz dominance conditions violate the axiom. We then characterize a class of intermediate Lorenz orderings and demonstrate that the only unit-consistent member is the one related to Krtscha (Models and measurement of welfare and inequality. Springer, Heidelberg, 1994)’s intermediate notion of inequality which has recently been investigated by Zoli (A surplus sharing approach to the measurement of inequality. Discussion paper no. 98/25, University of York, 1998; Logic, game, theory and social choice. Tilburg University Press, Tilburg, 1999) and Yoshida (Soc Choice Welf 24:557–574, 2005). Finally, we provide a general characterization for unit-consistent Lorenz orderings and the Krtscha-type dominance again turns out to be the only one that is intermediate and unit-consistent.     

MEASURING AND ANALYZING CLASS INEQUALITY WITH THE GINI INDEX INFORMED BY MODEL-BASED CLUSTERING

The most widely used measure for studying social, economic, and health inequality is the Gini index/ratio. Whereas other measures of inequality possess certain useful characteristics, such as the straightforward decomposability of the generalized entropy measures, the Gini index has remained the most popular, at least in part due to its ease of interpretation. However, the Gini index has a limitation in measuring inequality. It is less sensitive to how the population is stratified than how individual values differ. The twin purposes of this paper are to explain the limitation and to propose a model-based method—latent class/clustering analysis for understanding and measuring inequality. The latent cluster approach has the major advantage of being able to identify potential "classes" of individuals who share similar levels of income or one or more other attributes and to assess the fit of the model-based classes to the empirical data, based on different cluster distributional assumptions and the number of latent classes. This paper distinguishes class inequality from individual inequality, the type that is better captured by the Gini. Once the classes are estimated, the membership of estimated classes obtained from the best fitting model facilitates the decomposition of the Gini index into individual and class inequality. Class inequality is then measured by two relative stratification indices based on either the relative size of the Gini between-class components or the relative number of stratified individuals. Therefore, the Gini index is extended and assisted by model-based clustering to measure class inequality, thereby realizing its great potential for studying inequality. Income data from France and Hungary are used to illustrate the application of the method.     

Gender inequality and inter-household economic inequality in emerging economies: exploring the relationship

While most emerging economies have been characterised by persistence/growth of inter-household economic inequality in recent decades, and simultaneous poor performance on gender equality, the intersecting relationship between these two trends so far has not received much attention. This article is an initial attempt look at this relationship, showing how gender inequality has both contributed to, and been affected by, growing economic inequality. It focuses on eight emerging economies – Brazil, Russia, India, China, South Africa, Mexico, Indonesia, and Turkey (dubbed the BRICSAMIT countries). The article analyses Gini coefficient trends and Global Gender Gap Index trends, and draws in addition on insights gained from seven exploratory interviews with Oxfam colleagues and partners working on women's rights in the considered countries. It concludes with a reflection on the possible future policy agenda that would allow one to simultaneously address the issues of gender inequality and economic inequality in the analysed countries.     

The ‘Extended’ Atkinson family: The class of multiplicatively decomposable inequality measures,and some new graphical procedures for analysts

This paper introduces and characterises a class of inequality measures which extends the Atkinson family. This class contains canonical forms of all aggregative inequality measures, each bounded above by one, provides a new dominance criterion for ordering distributions in terms of inequality and offers some new graphical procedures for analysts. The crucial axiom for the characterisation is an alternative to the standard additive decomposition property that we call ‘multiplicative decomposability,’ where the within-group component is a generalised weighted mean with weights summing exactly to one. An erratum to this article can be found at     

Increasing health inequality in China: An empirical study with ordinal data

This paper employs a recently introduced method of income-health matrix to study health inequality in China. The method overcomes the problems associated with ordered self-reported health (SRH) responses when the conventional tools of inequality analysis are used. Applying the new method to the China Health and Nutrition Survey (CHNS) data, we find that over the study period of thirteen years, health inequality has increased by more than one hundred percent in spite of the multifold increase in average income. We conclude that the most likely explanations for the recent increase in China’s health inequality are: aging population, worsening income inequality and poverty, division between urban and rural, and environment deterioration.     

Seeing the system: Systemic gender knowledge to support transformational change towards gender equality in science

Scholars agree that gender inequality is systemic and that participants in gender equality interventions need knowledge on gender inequality processes. However, a detailed view on the specific characteristics of this knowledge is as yet missing. This article aims to contribute to gender equality interventions by conceptualizing and visualizing systemic gender knowledge as an important condition for transformational change. Combining gender and participatory system dynamics literature, this article first introduces the concept of systemic gender knowledge. This concept captures two main characteristics that make gender knowledge systemic: knowledge on the interaction of gender inequality processes and endogenous thinking, here implying a focus on the organization as the relevant level of analysis. In addition to this conceptual contribution, the research contributes methodologically to the gender inequality intervention literature by designing a visualization process, translating written texts into system dynamics models which enable exploration of systemic gender knowledge. Finally, the research contributes empirically by exploring the systemic gender knowledge of participants in two science research institutes of a Dutch university, finding shifts in both characteristics of systemic gender knowledge. This enables researchers to discern whether gender equality interventions lead to increases in systemic gender knowledge, thus supporting transformational change.