Unit 3 → Subtopic 3.9
Analysing Inequality: Mapping the Gini Coefficient
Economic inequality is one of the most pressing global challenges, affecting living standards, access to opportunities, and social stability. One of the most widely used tools to measure income inequality is the Gini coefficient, a statistical measure that quantifies income distribution within a country. A Gini coefficient of 0 represents perfect equality, where everyone earns the same income, while a coefficient of 1 represents extreme inequality, where one person holds all the wealth. This project challenges students to analyze global income inequality using the Gini coefficient and evaluate the factors contributing to economic disparities among different countries.
Students will begin by researching how the Gini coefficient is calculated and why it is used to compare wealth distribution across nations. They should investigate which countries have the highest and lowest levels of income inequality and determine whether inequality has been increasing or decreasing over time.
A major component of this project involves analyzing global patterns of economic inequality. Students should examine whether developed nations tend to have lower Gini coefficients due to progressive tax policies and social safety nets, while developing economies struggle with extreme wealth concentration. Additionally, they should assess whether globalization, technological advancements, and labor market trends have widened or narrowed income gaps across different regions.
Another key focus is investigating the consequences of high economic inequality. Countries with severe income disparities often face higher crime rates, weaker social mobility, and political instability, whereas those with lower inequality tend to experience stronger economic growth, improved health outcomes, and greater social cohesion. Students should explore how policies such as minimum wage laws, progressive taxation, and social welfare programs influence income distribution.
The final report should map global inequality using the Gini coefficient, analyzing which regions have seen progress and which continue to struggle with wealth concentration. The goal of this project is for students to develop a deeper understanding of the economic, social, and political implications of income inequality and the role of policy in shaping wealth distribution.
Recommended Procedure:
Research the Gini Coefficient and How It Measures Inequality – Study how the Gini Index is calculated and what it reveals about income distribution within countries.
Analyze Global Inequality Trends Using Gini Data – Investigate inequality levels across regions, comparing high-Gini countries (South Africa, Brazil) with low-Gini countries (Denmark, Norway).
Examine the Economic and Social Consequences of Inequality – Assess how wealth gaps affect access to healthcare, education, and economic mobility.
Use Data Visualization to Map Global Inequality – Create a graphical representation of Gini Coefficients worldwide to illustrate disparities between nations.
Write an Analysis on Economic Inequality and Its Solutions – Evaluate whether taxation, social policies, or economic reforms can effectively reduce income disparities.
Suggested Sources:
Understanding the Gini Coefficient and Income Inequality:
Investopedia: What Is the Gini Index? – https://www.investopedia.com
Khan Academy: Measuring Economic Inequality – https://www.khanacademy.org
2. Case Studies on Income Inequality in Different Nations:
The Balance: Countries With the Highest and Lowest Gini Coefficients – https://www.thebalancemoney.com
Harvard Business Review: The Economic Effects of Rising Inequality – https://hbr.org
3. How Governments Address Economic Disparities:
World Bank: Policy Approaches to Reducing Income Inequality – https://www.worldbank.org
OECD: The Role of Redistribution Policies in Economic Growth – https://www.oecd.org
4. Future Trends in Economic Inequality and Policy Solutions:
IMF: Global Economic Inequality and Its Challenges – https://www.imf.org
United Nations: Economic Inequality and the Sustainable Development Goals – https://www.un.org
Grading Rubric:
Total Points: __ /20
