Impact of Inequality:
Income Inequality: The Spirit Level
- Wilkinson and Pickett look at the ratio of the income received by the top 20% and
compare it to the bottom 20%.
o Household income
o After taxes
o Social security benefits included
o The larger the gap between the richest and poorest 20% - the more unequal
a society is assumed to be.
o
- The Countries:
o 22 Affluent countries - all within top 50 richest in world
o Did not include countries authors regarded as tax havens
o Did not include countries with populations smaller than 3 million
o Separate analysis on USA states.
- The Argument:
o Data - correlational, looking at relationship between two variables
o Higher levels of income inequality leads to higher levels of social problems
o Having higher levels of poverty cannot explain the differences
o Income inequality also causes other inequality such as gendered ones
o Look at a variety of topics including trust and happiness
o Issues are linked
Income Inequality: The Spirit Level
- Wilkinson and Pickett look at the ratio of the income received by the top 20% and
compare it to the bottom 20%.
o Household income
o After taxes
o Social security benefits included
o The larger the gap between the richest and poorest 20% - the more unequal
a society is assumed to be.
o
- The Countries:
o 22 Affluent countries - all within top 50 richest in world
o Did not include countries authors regarded as tax havens
o Did not include countries with populations smaller than 3 million
o Separate analysis on USA states.
- The Argument:
o Data - correlational, looking at relationship between two variables
o Higher levels of income inequality leads to higher levels of social problems
o Having higher levels of poverty cannot explain the differences
o Income inequality also causes other inequality such as gendered ones
o Look at a variety of topics including trust and happiness
o Issues are linked
