Review Sheet for Exam #3 Content

Theories

• Be able to explain and contrast the six theoretical models:

  • Static Model:

    • Inequality does not change or vary.

    • The Pareto Principle (the 80/20 rule) applies, suggesting reforms are futile or temporary.

  • Escalation Model:

    • Inequality will continue to rise indefinitely unless societal intervention occurs.

    • Piketty’s formula: r > g (returns on capital exceed economic growth).

    • Highlights cumulative advantage.

    • Emphasizes the need for government policy intervention.

  • Development Model:

    • Inequality rises and falls with economic development.

    • Industrial wages exceed agricultural wages, leading to sector migration effects.

    • Associated with the Kuznets curve concept.

  • Cyclical Model:

    • The rise and fall of inequality occurs cyclically over time.

    • Reflects the impact of deindustrialization and service sector growth.

    • Includes the Great U-Turn phenomenon, highlighting declines in organized labor.

  • Polarization Model:

    • Displays high inequality in periphery areas while core areas exhibit low inequality.

  • Convergence Model:

    • Suggests inequality levels are converging, with poor countries becoming more equal and rich nations becoming more stratified.

Inequality vs. Poverty

• Difference:

  • Inequality: relative deprivation in resource distribution.

  • Poverty: absolute deprivation concerning basic needs.

• Understand poverty trends for the world and specific regions over time.

  • Poverty rates have seen significant regional variations, with declines in most areas apart from Sub-Saharan Africa.

• Highest poverty regions: Sub-Saharan Africa; lowest rates in High-Income countries.

• The poverty line criteria is set by the international community, notably at $2.15/day (PPP).

• Important to treat both inequality and poverty as critical issues.

Inequality vs. Mobility

• Definitions:

  • Inequality: the distribution of resources.

  • Mobility: the distribution of opportunities.

• Understand societal benefits of mobility: facilitates better resource allocation, promotes aspirations, and enhances social legitimacy.

• Examine cross-national trends in mobility relating to income and education, identifying the Highest and Lowest mobility countries.

• The Great Gatsby Curve illustrates the inverse relationship between inequality and mobility.

Gender Inequality

• Ascription:

  • Life chances determined by inherent traits beyond individual control.

• Factors behind gender equity improvements include:

  • Globalization, modernization, the rise of post-materialism, and advocacy for women's rights.

• Global Gender Gap:

  • Calculated on four dimensions: Economic Participation & Opportunity, Educational Attainment, Health & Survival, and Political Empowerment.

• Regional variations in gender inequality are reflected in the Global Gender Gap rankings.

• Key reasons for skewed sex ratios and explanations for the gender pay gap discussed.

Measuring Gender Inequality

• Examine the global gender gap in different areas, identifying critical statistics on health survival, education attainment, economic participation, and political empowerment.

• Dimensions:

  • Health and survival: sex ratios, life expectancy.

  • Educational attainment: literacy, school enrollment figures.

  • Economic participation: paid work types and salaries.

  • Political empowerment: representation in government entities.

Unpaid Work and Political Empowerment

• Unequal division of unpaid labor analyzed; trends show increased female representation in political roles over time.

• The international women's movement, emphasizing the need for gender quotas and addressing stereotypes in electoral systems discussed.

Conclusion

• To fully understand the interconnections between inequality, mobility, gender issues, and poverty, it's vital to explore theoretical models, historical data, and contemporary research findings.