employment (formal and informal), Lesson objectives: To be able to Explain disparities and inequities that occur within countries  Key terms: Gini Coefficient Cumulative causation Economic core region Periphery Backwash effect Spread effects Factors: ethnicity, residence, parental education, income, employment (formal and informal), land ownership

Describe the global variation of the Gini coefficient Measures the extent of income inequality How far does income distribution deviate from perfectly equal distribution? A ratio of 0 = perfectly equal distribution A ratio of 1 = perfectly unequal distribution 10 mins See fig 1 p92 in Guinness. Describe the global variation of the Gini coefficient

The Lorenz curve p93 fig 3 Diagonal line = perfect equality in income distribution

Gini coefficient in Hong Kong 5 mins Describe how income inequality in Hong Kong changed between 1981 and 2011

Correlations Is there a significant correlation between gini coefficient and HDI? Open the spearman’s rank excel sheet in disparities – wikispace Write down a hypothesis: Null: There is no correlation between HDI and gini coefficient Alternative: There is a significant correlation between HDI and gini coefficient

Is there any correlation between GNI and Gini coefficient?

Spider diagram Suggest reasons for the increase in GC between 1981 and 2011 Consider: Changing employment structure of Asian tigers from export of manufactured goods to knowledge based (tertiary) economy, Inflow of migrants, Ageing population Decreasing household size (from 3.3 in 1996 to 2.9 in 2011) 10 minutes

Summarise the characteristics of regional inequality using p93 Changes in rich poor gap? Who benefits most from economic growth? Where is social mobility easiest? 5 mins

Theory of regional disparities Cumulative causation A process whereby a significant increase in economic growth can lead to even more growth as more money circulates in the economy Use figure 4 to write a paragraph summarising Myrdal’s cumulative causation model

Backwash effect Outflow of labour, capital and raw materials to ‘economic core’ or ‘heartland’. Leaves the hinterland or peripheral areas without. Manufactured goods and services from the heartland undercut small scale services in the hinterland.

Spread effects Increasing demand for raw materials from the hinterland stimulates economic growth These may overcome the backwash effects Only applicable to those areas with valuable raw materials or significant advantages

Hirschman (1958) Economic core regions - virtuous circles of development or upward spirals Periphery – downward spirals Until ‘trickle down’ spread economic growth from core to periphery.

Look at fig 2 p93 Why could the income inequality have increased in the UK between 1961 and 2002/3? Suggestion: Consider the changes in employment in the UK

Homework Watch this: http://www.youtube.com/watch?v=e_Ht_19N8Uw