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EC 240 INEQUALITY, POVERTY, AND WEALTH
Last updated: August 16, 2011 EC 240 INEQUALITY, POVERTY, AND WEALTH Fall 2011 Tuesdays and Thursdays, 8:30 – 9:45am Lafayette 408 Professor Stephanie Seguino Email: [email protected] Telephone: 802.656.0187 Office: Old Mill 340 Website: www.uvm.edu/~sseguino Office hours: T and Th, 10:00-11:15am by appointment ______________________________________________________________________________________ COURSE DESCRPTION This course explores how the discipline of economics can be used to analyze the causes and effects of intergroup inequality as well as the determinants of wealth and poverty. The material we cover takes a decidedly macroeconomic focus, emphasizing group and cross-country differences in well-being. Students will be introduced to ways to measure each (and the problems associated with these measures), and economic theories of poverty, wealth, and inequality. We will examine the relationship between inequality on the one hand, and macroeconomic outcomes on the other. In that context, we consider the consequences of inequality in the developing world, and of the effects of increasingly open trade and capital markets on poverty and on inequality within and across countries. Finally, we explore a variety of policy solutions to reduce poverty and inequality between groups and countries. ________________________________________________________________________ Textbooks The following books will be used in this course: 1. Ehrenreich, Barbara. 1999. Nickel and Dimed. New York: Metropolitan Books. ISBN-13= 978-0805063899 (Paperback). OR, by the same author, 2006. Bait and Switch. New York: Holt Paperbacks. ISBN 0805081240. 2. Wolff, Edward. 2009. Poverty and Income Distribution. Second edition. Malden, MA: Wiley-Blackwell. ISBN-13 978-1405176606. 3. Held, D. and A. Kaya (Eds). 2007. Global inequality. Malden, MA: Polity Press. ISBN-13 978-0745638874. ____________________________________________________________ 1 Last updated: August 16, 2011 GRADING Student obligations include the following components with weights to be used in calculating the final course grade in parentheses. a. Five assignments [see below for descriptions] (35%). b. Weekly class preparation and participation There are two elements to class preparation and engaged participation. First, students will be expected to read all required assignments and come prepared to discuss the material. It is the responsibility of students to prepare questions for class discussions and/or select a meaningful passage for deeper examination. These questions/passages should be included in weekly reaction papers, due on Tuesday of each week, before class begins, electronically. Specifically, students should write brief reaction papers/memos to the readings. Comments should be about 300-500 words. The paper/memos should not be summaries of the week's readings. Instead, they should be your reactions and analyses of the theses or arguments of the authors. This may include comparing and contrasting perspectives, methods, findings, and implications of different articles. It may also include questions authors raise but do not answer. Students can consider class readings with ideas encountered in other social science classes; relate personal experiences to the issues raised by the readings; explore new avenues of thought suggested by the readings; and analyze one's own emotional and intellectual reactions to the readings. Preparation for classes, development of reaction papers with discussions questions and/or selection of passages for analyses in class, and in-class participation is 40% of the course grade. c. Final comprehensive exam December 13. The final exam is worth 25% of your final grade. ___________________________________________________________ Attendance and Participation Students are expected to be on time, to have read the assigned material BEFORE arriving to class, and to participate fully in class discussions. You should bring copies of assigned readings to class, and on Tuesdays, your weekly reaction papers. Absences are costly. In a seminar course, a preponderance of learning occurs during our meetings. You get once get of jail free card. Beyond that, a second and third unexcused absence (documentation required) will result in a loss of one half a letter grade each. Four unexcused absences will result in a failing grade for the course. All materials for this course, beyond the assigned required books, can be found on Blackboard [BB], as well as announcements for changes to the syllabus or the schedule outlined below. You should make sure your UVM email account is active and that you check it regularly in order to keep up with class announcements. ________________________________________________________________________ Course Outline Required readings are identified. Some of the recommended readings (though not all) will be covered in lectures and also represent suggestions for exploration in your papers. I will also ask (in advance) for volunteers to read some of them and to comment in class on 2 Last updated: August 16, 2011 their content and relationship to assigned readings. Part I. Real World Inequality, Poverty, and Wealth (IPW) Week 1 (Aug. 30 – Sept. 1) Introduction: The contours of Inequality, Poverty, and Wealth Quiz (not graded) Questions How do we define inequality? Does inequality matter? o A justice perspective o An externalities perspective Readings 1. 2. 3. 4. Ehrenreich, E. Nickel and Dimed or Bait and Switch. Read all. Wade, R. 2007. “Should We Worry About Income Inequality?” In D. Held and A. Kaya, pp. 104131. Murray, C. 2005. “The Inequality Taboo.” http://www.bible-researcher.com/murray1.html Wolff, E. Ch. 16.1. Recommended Konow, J. 2003. “Which is the Fairest of Them All? A Positive Analysis of Justice Theories.” Journal of Economic Literature 41: 1188-1239. Milanovic, B. 2003. “Why we all do care about inequality (but are loath to admit it)?” Unpublished. World Bank. http://129.3.20.41/eps/hew/papers/0404/0404001.pdf ASSIGNMENT ONE: Due September 20. See detailed instructions at the end of this syllabus. Week 2 (September 6 - 8): Conceptualizing Inequality, Poverty, and Wealth Questions How do the income, capabilities, and subjective approaches to assessing well-being compare? What distinguishing contribution do each of these three approaches make to our understanding of well-being? Readings 1. 2. 3. Wolff, E. Ch. 2. Ch. 4.2, Ch. 5. 2. UNDP, Human Development Report 2010, Ch. 1. http://hdr.undp.org/en/media/HDR_2010_EN_Chapter1_reprint.pdf Kahneman, D., A. Krueger, D. Schkade, N. Schwarz, and A. Stone. 2004. “Toward National WellBeing Accounts.” American Economic Review 94(2): 429-434. Recommended Frey, B. and A. Stutzer. 2001. “What Can Economists Learn from Happiness Research?” Institute for Empirical Research in Economics University of Zurich Working Paper Series. 3 Last updated: August 16, 2011 Silver, H. and S.M. Miller. 2008. “Social Exclusion: The European Approach to Social Disadvantage.” Poverty and Race Research Action Council. http://www.scribd.com/doc/3322960/Social-Exclusions Week 3 (September 13 - 15): Measuring Inequality, Poverty, and Wealth Questions How are poverty and inequality measured? How much inequality and poverty is there? Has inequality worsened or improved in the US? Globally? Readings 1. 2. 3. Wolff, E. Ch. 2.2-2.6, Ch. 3, and Ch. 4.3-4.5, Ch. 5.3.-5.4. Milanovic, B. 2007. “Globalization and Inequality.” In D. Held and A. Kaya, Global Inequality, pp. 26-49. Social Sciences Research Council. 2009. The Measure of America: American Human Development Report 2010-11. http://www.measureofamerica.org/the-measure-of-america-20102011-book/ [Read Key Findings. The link is located at the bottom right of the page, under Selected Excepts]. Recommended UNDP. 2009. Human Development Report 2010. Available online. See introduction and statistical appendices on human development measures. World Bank. 2006. World Development Report. Chapter 1. http://wwwwds.worldbank.org/external/default/WDSContentServer/IW3P/IB/2005/09/20/000112742_200509 20110826/Rendered/PDF/322040World0Development0Report02006.pdf. Institute for Research on Poverty. 1995. “Measuring Poverty: A New Approach.” Eberstadt, N. 2002. “The Poverty Rate: America's Worst Statistical Indicator.” http://www.aei.org/publications/pubID.13711,filter.all/pub_detail.asp. World Bank, Poverty and Inequality Measurement. http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTPOVERTY/EXTPA/0,,contentM DK:20153855~menuPK:435040~pagePK:148956~piPK:216618~theSitePK:430367,00.html ASSIGNMENT TWO. Due October 6. See detailed instructions at the end of this syllabus. Week 4 (Sept. 20 - 22) Theories on the causes of poverty and inequality Questions What is human capital theory? How is discrimination defined and assessed? What is the role of job segregation in producing intergroup inequality? Inequality in the US context: Merit or stratification? What are horizontal inequalities and what are their causes? Readings 1. 2. 3. Wolff, E. Ch. 8, Ch. 9.3, Ch. 12. Stewart, F. “Horizontal Inequalities: A Neglected Dimension of Development.” Working paper, Centre for Research on Inequality, Human Security and Ethnicity, CRISE. [BB] Massey, D. 2007. “How Stratification Works.” In D. Massey, Categorically Unequal: The American Stratification System, pp. 1-27. New York: Russell Sage. [BB] 4 Last updated: August 16, 2011 Part 2: Intergroup Inequality within Countries Weeks 5 - 6 (Sept. 27 – Oct. 6) Racial and ethnic inequality Questions What are the determinants of racial economic inequality? How does spatial segregation contribute to racial/ethnic inequality? Readings 1. 2. 3. 4. Blumer, H. 1958. “Race Prejudice as a Sense of Group Position.” Pacific Sociological Review 1(1): 3-7. Mason, P. 2007. “Persistent Racial Discrimination in the Labor Market.” In C. Conrad, et al, African Americans in the US Economy, pp.141-150. [BB] Pager, D. B. Western, and B. Bonikowski. 2009. “Discrimination in a Low-Wage Labor Market: A Field Experiment.” IZA Discussion Paper No. 4469. [BB] Shapiro, T. and J. Kenty-Drane. 2005. “The Racial Wealth Gap.” In C. Conrad, et al, African Americans in the US Economy, pp. 175-184. [BB] Recommended Goldsmith, A., D. Hamilton, and W. Darity, Jr. 2006. “Shades of Discrimination: Skin Tone and Wages.” American Economic Review Papers and Proceedings 96(2): 242-245. Kroll, A. 2011. “What We Don't Talk About When We Talk About Jobs: How Racism, Global Economics, and the New Jim Crow Fuel Black America's Crippling Jobs Crisis.” http://www.tomdispatch.com/archive/175413/ Kelley, Robin G. 1997. Yo’ MAMA’s DisFUNKtional! Fighting the Culture Wars in Urban America. Boston: Beacon Press. King, M. 2009. “Occupational Segregation by Race and Sex in Brazil 1989-2001.” Review of Black Political Economy 36(2): 113-126. Bertrand, M. and S. Mulainathan. 2004. “Are Emily and Greg More Employable than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination.” Mimeo. Massey, D. and N. Denton. 1998. American Apartheid. Cambridge, MA: Harvard University Press. Minorities at Risk Project. http://www.cidcm.umd.edu/mar/ (Peruse for data across countries). Week 7 (Oct. 11 - 13) Gender inequality Questions What are the dimensions of economic inequality by gender? Does human capital theory explain gender inequality? What role does the gender division of labor play? What is the Duncan Index? How do norms and stereotypes contribute to gender inequality? Reading 1. 2. Wolff, E. Ch. 14.1-14.3. 3. Seguino, S. 2010. “Gender and Development.” Working paper. [BB] Edin, K. & L. Lein. 1997. Making Ends Meet: How Single Mothers Survive Welfare and Low-Wage Work. Russell Sage Foundation, pp. 1-19. [BB] Recommended 5 Last updated: August 16, 2011 Badgett, M. V. Lee and Nancy Folbre. 1999. “Assigning Care: Gender Norms and Economic Outcomes.” International Labour Review 138(3): 311-26. Blau, F., M. Ferber, and A. Winkler. 2009. The Economics of Women, Men, and Work. Fifth edition. Prentice-Hall. Blumberg, R. L. 1984. "A General Theory of Gender Stratification." In R. Collins, Sociological Theory, pp. 23-101. San Francisco, CA: Jossey-Bass. See summary of this article at http://www.bolender.com/Sociology/Articles/Feminist%20Conflict%20Theory.htm Sen, Amartya. 1990. “More Than 100 Million Women Are Missing.” New York Review of Books 37(20). Ruwanpura, K. 2008. “Multiple identities, Multiple Discrimination: A Critical Review.” Feminist Economics 14(3): 77-105. Jütting, J. and C. Morrisson. (2005) “Changing Social Institutions to Improve the Status of Women in Developing Countries.” Policy Brief No. 27, OECD. ASSIGNMENT THREE. Due October 20. See detailed instructions at the end of this syllabus. Part 3: Macroeconomic Dimensions of Inequality Week 8 (October 18 – 20) Macroeconomic impacts of inequality Questions What is the effect of inequality on macroeconomic outcomes? How do the effects of education vs. wage inequality affect growth? What are the pathways by which gender inequality affects growth? Readings 1. 2. 3. 4. Quintin, E. and J. Saving. 2008. “Inequality and Growth: Challenges to the Old Orthodoxy.” Economic Letter 3(1) (Federal Reserve Bank of Dallas). http://www.dallasfed.org/research/eclett/2008/e10801.html. Cramer, C. 2003. “Does Inequality Cause Conflict?” Journal of International Development 15: 397-412. Berg, A. and J. Ostryl. 2011. “Inequality and Unsustainable Growth: Two Sides of the Same Coin?” IMF Staff Discussion Not 11/08. [BB] Handouts of neoclassical and Kaleckian macro models, if time permits. Recommended Aghion, P., E. Caroli, and C. Garcia-Penalosa. 1999. “Inequality and Economic Growth: The Perspective of New Growth Theories.” Journal of Economic Literature 37(4): 1615-1660. Blackden, M., Canagarajah, S. Klasen, and D. Lawson. 2005. “Gender and Growth in Sub Saharan Africa: Evidence and Issues.” http://64.233.169.104/search?q=cache:acudGxKIxo0J:www.wider.unu.edu/conference/conference -2005-3/conference-2005-3papers/Klasen.pdf+blackden+klasen+gender&hl=en&ct=clnk&cd=4&gl=us. Braunstein, E. 2008. “The Feminist Political Economy of the Rent-Seeking Society: An Investigation of Gender and Economic Growth.” Journal of Economic Issues 42(4): 959-979. Eissel, D. 2008. “Inequality and Growth as a Motor for Growth and Prosperity.” Journal of Contemporary European Studies 16(1): 9-23. Frank, R. and P. Cook. The Winner Take All Society. Free Press. Wilkinson, R. and K. Pickett. 2009. The Spirit Level: Why Greater Equality Makes Societies Stronger. New York and London: Bloomsbury Press. 6 Last updated: August 16, 2011 Week 9 (Oct. 25- 27) Global inequality and macroeconomic policy Questions What are the trends in global inequality and poverty since 1980? How does liberalization of trade, finance, and investment impact on inequality? Readings 1. 2. 3. Dollar, D. 2007. “Globalization, Inequality, and Poverty Since 1980.” In D. Held and A. Kaya, pp. 73-103. Galbraith, J. 2007. “Global Inequality and Global Macro Economics.” In D. Held and A. Kaya, pp. 148-175. Seguino, S. 2010. “Globalization and Inequality.” Unpublished manuscript [BB]. Recommended Harrison, A. 2007. “Globalization and Poverty.” Working paper no. 57, American University of Paris. http://www.aup.edu/pdf/WPSeries/AUP_wp57-Harrison.pdf [Published as “Globalization and Poverty: An Introduction” in A. Harrison (ed), Globalization and Poverty. University of Chicago Press. http://www.nber.org/chapters/c10713.pdf?new_window=1 Reinert, E. 2007. How Rich Countries Got Rich and Why Poor Countries Stay Poor. PublicAffairs Wade, R. H. 2004. "Is Globalization Reducing Poverty and Inequality?" World Development, 32 (4): 567-589. A longer version in LSE Development Studies Institute, Working Paper Series No.01-10. Weisbrot, M., D. Baker, E. Kraev, and J. Chen. 2001. “The Scorecard on Globalization 19802000: Twenty Years of Diminished Progress.” Center for Economic Policy Research: Washington D.C. http://www.un.org/esa/desa/papers/2006/wp31_2006.pdf Part 4: Solutions Week 10 (Nov. 1 - 3) Public Investment and Taxes Readings 1. 2. 3. Wolff, E. Ch. 15.1-15.5, 16.3-16.5. Kozol, J. Savage Inequalities. Chs. 2 and 3. Agenor, P.-R., O. Canuto, and L. P. da Silva. (2010). “On Gender and Growth: The Role of Intergenerational Health Externalities and Women’s Occupational Constraints.” World Bank Policy Research Working Paper No. 5492. [Read pp. 1-18]. Recommended Street, J. and I. Pollack. 2008. “A Rescue Plan for Main Street.” EPI Policy Memorandum No. 132. http://www.epi.org/publications/entry/pm132/ ASSIGNMENT FOUR. Due November 8. See detailed instructions at the end of this syllabus. Week 11 (November 8 - 10) Jobs and Income Guarantees Readings 7 Last updated: August 16, 2011 1. 2. Wray, R. 2007. “The Employer of Last Resort Programme: Could It Work for Developing Countries?” ILO, Employment Analysis and Research Unit 2007 / 5. http://www.cfeps.org/elm07-5.pdf Parijs, P. XXXXX on Basic Incomes. Recommended Pollin, R. 2011. “Back to Full Employment.” Boston Review. http://www.bostonreview.net/BR36.1/ndf_employment.php. See, also, contributions of Jayati Ghosh, Jamie Galbraith, Reihan Salam, as well. Basic Income Earth Network, http://www.basicincome.org/bien/aboutbasicincome.html Amsden, A. 2010. “Say’s Law, Poverty Persistence, and Employment Neglect.” Journal of Human Development and Capabilities 11(1): 57-66. Week 12 (November 15 - 17) Social Protection Readings 1. 2. Razavi, S. 2011. “Engendering Social Protection.” FES Working Paper. [BB] Newman, K. 2008. “The Next Time Around.” http://www.brookings.edu/~/media/Files/events/2008/0929_poverty/newman_paper.pdf Recommended Fraser, N. 2007. “Reframing Justice in a Globalizing World.” In D. Held and A. Kaya, pp. 252-271. Osei-Boatang, C. 2011. “Engendering Social Security and Protection: The Case of Africa.” [BB] CPRC. 2008. Chronic Poverty Report 2008. http://www.chronicpoverty.org/publications/details/the-chronic-poverty-report-2008-09/ss. Week 13 (Nov. 29 – Dec. 1) Reparations and Building Assets Readings 1. Darity, W. A. 2008. “Forty Acres and a Mule in the 21st Century.” Social Science Quarterly 89(3): 656-664. 2. Hamilton, D and W. A. Darity. "Race, Wealth and Intergenerational Poverty: There Will Never Be a Post-Racial America if the Wealth Gap Persists"." The American Prospect 20(7); A10-A12, http://www.prospect.org/cs/articles?article=race_wealth_and_intergenerational_poverty Week 14 (Dec. 6) Wrap-up and summary, discussion of assignment 5. ASSIGNMENT 5. Due December 6. See detailed instructions at the end of this syllabus. Final exam, Dec. 13, Wednesday, 10:30am - 1:15pm, Old Mill 408 ________________________________________________________________________ STUDENT RESPONSBILITY I have tried to give you a good idea of what the course involves and the timetable on which we will work through the material. I reserve the right to change readings, times, and other aspects of the syllabus as needed, however. You are responsible for reading your syllabus to keep abreast of the schedule, and staying current on any other changes to the syllabus, which will be announced in class and will also be communicated electronically to each of your UVM email addresses. 8 Last updated: August 16, 2011 Assignment One Due September 20 at the beginning of class. Instructions: The class will be divided into two groups. One half will complete a neighborhood profile (“Urban Neighborhood Survey”). The second group will develop an understanding of what it is like to live in poverty by collecting information on the cost of a basic needs budget as compared to your actual budget (“Poverty Budgets”). These assignments are due September 20, 2010 at the beginning of class. I prefer your papers to be submitted electronically. The format for submission should be lastname_firstname_assignment number. For example, using myself as an example, the first assignment would be labeled: Seguino_Stephanie_Assignment1 Group 1: Urban Neighborhood Survey Members of this group will be assigned to two neighborhoods in Burlington, Winooski, and/or Shelburne, one high income and one low income. You will collect demographic information about the neighborhood, physically explore the neighborhood, and interview people in the neighborhood about it. Each group member will pick an aspect of your findings to write a three- to five-page paper about, drawing on your data and interviews. Examples of questions to ask and answer 1. Is there evidence of pollution or waste sites in this area? 2. Are/there special health hazards in this area? (Lead poisoning, abnormal cancer rate, rape/murder rate, etc.). 3. Is this a “green” neighborhood? (Are there trees, parks?) 4. Describe the commercial activity in this neighborhood. 5. Any industrial activity here? Describe. 6. Is school performance unusually high or low here? [Base this on evidence, not speculation. Talk to school principals]. 7. What (mix of) economic classes of people reside here? How has this changed historically? 8. What (mix of) cultures/ethnicities of people reside here? How has this changed historically? 9. Do residents rely on public transportation? If so, is it adequate? 10. Are there banking facilities (ATM machines, banks, check cashing venues)? 11. What is the housing mix? (Single family vs. rental units; availability of affordable housing). 12. What is the quality of the streets? Are they well-paved? Are there any traffic/congestion problems? 13. Assess the degree of poverty and wealth in this neighborhood. Describe the evidence you use to make this assessment. 14. What surprised you the most when completing the survey in each neighborhood? What did not surprise you? Group 2: Poverty Budgets This assignment is meant for you to understand the definition of poverty and what it is like to live in poverty. For this assignment, you will need to collect information on how much you usually spend per week or per month on food, rent/mortgage, utilities, clothes, etc. You can look at past expenses or simply keep track of all of them for one week. You will then have to figure out which items you would have to live without in order to live within a poverty budget. 1. Assume you live alone and are poor. This means your income is $209.42 per week or lower, and $907.50 per month or lower, and $10,890 per year or lower. All of your expenses, including rent, food, gas, utilities, insurance, transportation and parking expenses, clothing, tuition, books, and 9 Last updated: August 16, 2011 school fees, must be within these income limits. Assume you do not qualify for food stamps, medical benefits, or housing subsidies. Could you live where you currently live? (Could you afford it?) If not, where would you have to live? (You need to look through the Sunday Housing section in the Burlington Free Press or in Seven Days). What would you eat? Describe the food you could afford to buy, and what you would have to do without. Remember, this should be about $4.22 per day. When you go out shopping for food, price the items that would fill you for a week and stay within your budget. (Or if you live with others and someone else shops, keep the grocery receipt and notice what you would have to do without). What expenses would you have to cut (gas, car, electricity, phone, subscriptions, college, etc.)? How would these cuts affect the quality of your life? Would it jeopardize your safety or security in any way? 2. 3. In your opinion, after doing this assignment, is the poverty threshold (living on $209.42 per week for one person, or $282.89 per week for you and an infant) too low (meager) or too high (generous)? Explain your answer. In a short paper (3-5 pages), summarize your responses to the above questions and present a detailed budget that outlines how much you are spending on housing, food, utilities, and all other expenses per month, year, or week. Those of you who are adventurous can try to actually live on these budgets. But the non-adventurous can simply keep track of what adjustments you would need to make in order to live on this amount of money for one week. Note: This assignment was developed by Professor Marlene Kim at the University of Massachusetts at Boston. I am grateful to her for allowing me to adopt it here. Assignment Two Due October 6 at the beginning of class. Identify one indicator of economic well-being. Prepare 1-2 charts to illustrate (a) the trend in the indicator over time; and (b) a comparison across racial/ethnic groups, countries, or gender. Your chart could update information reported in one of the assigned readings or you might look at the same years but focus on a particular state, region or locality. You should include the most recent available data. Your graphs should have a heading that describes the graph’s main message. The graph(s) should be accompanied by one paragraph of text or a series of bullet points that discuss limitations and caveats in interpreting the data. Possible sources of data: US Census Bureau, http://www.census.gov/pubinfo/www/NEWafamML1.html Joint Center for Political and Economic Studies,http://www.jointcenter.org/DB/index.htm Bureau of Labor Statistics, http://www.bls.gov National Center for Education Statistics, http://www.nces.ed.gov National Science Foundation, Science and Engineering Statistics, http://www.nsf.gov/statistics/ Federal Reserve Board Survey of Consumer Finances, http://www.federalreserve.gov/pubs/oss/oss2/scfindex.html Equal Employment Opportunity Commission, http://www.eeoc.gov/stats/employment.html World Development Indicators, Available through Bailey-Howe library website. Human Development Report, http://hdr.undp.org/en/ 10 Last updated: August 16, 2011 Assignment Three Paper 4-6 pages, with partner. Gary Becker’s Theory of Discrimination (see Wolff) predicts that, controlling for human capital, competition will tend to eliminate wage discrimination. Is there persuasive empirical evidence that racial and gender discrimination in wages has diminished over time as inequality in human capital narrows? Provide data to make your case. Rely on the recommended readings as well as required readings as sources of data. Assignment Four There is a growing body of research that finds that the rate of economic growth is related to the degree of inequality. Specifically, it is argued that growth reduces poverty and inequality, and further, that the degree of inequality has an effect on the rate of economic growth. To assess these arguments, choose your country of interest. Identify one or two measures of inequality (income, capabilities, or other variables that you deem appropriate) and compare the relationship between the variables and the rate of economic growth over a twenty-year period of time. To do this, construct scatterplots of your variables of interest, and calculate the correlation coefficient. Present these results in a short paper (3-5 pages), along with your analysis of which direction the effects flow and why you believe that to be the case. Readings in Weeks 8 and 9 are resources for identifying appropriate variables and theoretical reasoning on the relationship between the well-being variables and economic growth. GDP data can be found through the university’s library website. Simply look for World Development Indicators. You should also be able to find a number of inequality and poverty indicators there, as well as the UNDP Human Development report website. Assignment Five Write a 5-page paper to cover two related topics: 1. How has your thinking on the causes and solutions to inequality and poverty, and wealth distribution changed if at all, as a result of the material covered this semester? 2. What do you see as the most viable policies to reduce inequality and poverty (whether by race, gender, or across nations) and why? How are your choices more effective than other proposals that have been advanced? Choose at least two policies proposed in the required and recommended readings to focus your discussion on. Analyze both your own and various authors’ assessment of their virtues and limitations. 11