measuring inequality

Question 1

what curve measures inequality

Answer 1

-the elephant curve

Question 2

what does the elephant curve show

Answer 2

-global inequality has grown at top end, with the elite benefiting disproportionatley well from globalisation
-shows other big winners have been emerging economic e.g. china
-main losers are worlds middle class (deindustrialisation) and very poorest

Question 3

issues with elephant curve

Answer 3

-didnt use specific locations, only an average
-population size influences income average- may seem lower with bigger population

Question 4

why would inequality fall due to globalisation

Answer 4

-poorer countries produce goods require large amts of unskilled labour
-rich countries focus on things with skilled workers
-as trade increases, unskilled workers in high demand in poor countries while skilled workers arent
-unskilled workers get wage boosts and skilled counterparts dont

Question 5

why would inequality increase due to globalisation

Answer 5

-due to outsourcing
-multinationals in poor countries employ skilled workers and pay high wages
-skilled workers get to work with managers from rich countries, boosting productivity, boosting wage
-unskilled workers dont have opportunities

Question 6

example of multinational only employing skilled workers

Answer 6

-one study shown workers in foreign owned clothing and footwear factories in Vietnam rank top 20% of countries population by household expenditure