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Lecture 4

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McMaster University
Lina Samuel

Fox 1 Lecture 4 SOCIOL 2R03 Monday September 30, 2013  Class & Class Privilege Agenda:  Measuring Inequality  Gini Coefficient, Lorenz Curve  Why is inequality rising?  Social Class: how do we define it?  Operationalizing Social Class (British Example)  Will Hutton (1995): The 30/30/40 Labour Market th  Reminder: Test 2 Chapters 3&4: Thursday October 10 , 2013 Visualizing Inequality:  Inequality requires both  wealth and poverty  Best way to visualize  inequality is via  a pyramid  Typically, there are many who are poor – in the lower and lower-middle parts of the pyramid, a moderate number in the middle, and a smaller number near the top – inequality refers to how far apart the top is from the bottom, but involves the whole pyramid tgnA28BUxXviVBppEv5YQxbQGAZm6U0PZyw  Income Polarization:  Polarization also requires  Both wealth and poverty,  But is conceptually missing its  ‘Middle’  Visualize  Inequality via  An hourglass  Under polarization, the population is grouped into, or concentrated into, two distinct regions or ‘poles’ of the income distribution – one poorer, one richer Fox 2 Lecture 4  Gini Coefficient This area between the two lines is what is measured by the Gini:  Gini= A/A+B  Higher the value of A, the higher the levels of income inequality.  1= perfect inequality  0=perfect equality  Canada gets a “C” grade and ranks 12th out of 17 peer countries.  Income inequality in Canada has increased over the past 20 years.  Since 1990, the richest group of Canadians has increased its share of total national  income, while the poorest and middle-income groups has lost share. From the Conference Board of Canada: How Canada Performs data current as of Jan 2013 Income Inequality, Late 2000s (chart) Richest Group Accounts for the Largest Share of Canadian National Income, 2010 (chart)  Why is inequality rising?  Market forces  Sernau (2014) speaks of changes in the occupational structure  Institutional forc
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