1. 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

2. 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

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

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

5. 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

7. Is there any correlation between GNI and Gini coefficient?

8. 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

9. 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

10. 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

11. 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.

12. 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

13. 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.

14. 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

15. Homework
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