Short courses
AAU
Summer school
Seminar Series
Crash course
in economics

Short courses PhD

Economics of Inequlity
23-27 March
 
Workload: 2 ECTS
Faculty: Prof. Dr. Daniele Checchi, University of Milan, Italy
Assessment:

Content and objectives

Existing economic theories of income inequality make reference either to the functional distribution of income (between wages and profits) or to the personal distribution on incomes (between heterogeneous agents with different abilities and skills). In addition, the distribution of property rights has impact onto the intertemporal evolution on income distribution.

After reviewing the state of art, the course will touch upon measurement issues (descriptive vs axiomatic approaches), as well as the issue of data reliability.

The third part of the course presents existing empirical evidence on income inequality, either cross-country or cross-year, assessing the relative contribution of underlying fundamentals (stage of development, access to education, labour market institutions).

Finally, the course discusses the relationship between inequality and mobility, showing how the two concepts are interrelated, both at theoretical and at empirical level.

Literature
Theories of income inequality

  • A.Atkinson and F.Bourguignon. 2003. Income distribution and economics. in A.Atkinson and F.Bourguignon (eds). Handbook of Income Distribution. NorthHolland. 1-58

  • D.Neal and S.Rosen. 2003. Theories of the distribution of earnings. in A.Atkinson and F.Bourguignon (eds). Handbook of Income Distribution. NorthHolland. 379-428

Measuring inequality

  • P.Lambert. 1989. The distribution and the redistribution of income. Blackwell (chpts.2-3-4-5)

  • F.Cowell. 2003. Measurement of inequality. in A.Atkinson and F.Bourguignon (eds). Handbook of Income Distribution. NorthHolland. 87-166

Measurement issues

  • A.Atkinson and A.Brandolini. 2001. Promise and Pitfalls in the Use of “Secondary” Data-Sets: Income Inequality in OECD Countries. Journal of Economic Literature vol. 34, pp. 771-799.

  • A.Atkinson and A.Brandolini. 2004. A panel-of-country approach to explaining income inequality: an interdisciplinary research agenda. mimeo

Empirical evidence

  • P.Gottschalk, and T.Smeeding. 1997. Cross-National Comparisons of Earnings and Income Inequality, Journal of Economic Literature, 35: 633-687.

  • P.Gottschalk, and T.Smeeding. 2003. Empirical evidence on income inequality in industrial countries. in A.Atkinson and F.Bourguignon (eds). Handbook of Income Distribution. NorthHolland. 261-308

  • C.Morrisson. 2003. Historical perspectives on income distribution: the case of Europe. in A.Atkinson and F.Bourguignon (eds). Handbook of Income Distribution. NorthHolland. 217-260

  • Alderson, A. and  F. Nielsen. 2002. Globalisation and the great U-turn: income inequality trends in 16 OECD countries. American Journal of Sociology 107: 1244-1299.

  • D.Checchi and C.Garcia Peñalosa. 2005. Labour shares and the personal distribution of income in the OECD. IZA Discussion Paper No. 1681/2005

  • T.Piketty. 2005. Top income share in the long run: an overview. Journal of the European Economic Association 3 (2-3): 382-392

Inequality and intergenerational mobility

  • T.Piketty. 2003. Theories of persistent inequality and intergenerational mobility. in A.Atkinson and F.Bourguignon (eds). Handbook of Income Distribution. NorthHolland. 429-476

  • Maoz, Y. and O.Moav. 1999. Intergenerational mobility and the process of development. Economic Journal 109: 677-97.

  • M.Corak. 2006. Do poor Children become poor adults ? Lesson from a cross country comparison of generational income mobility. IZA discussion paper n.1993
     




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