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Margins/Berlin MPPA-DL 452 Session 5
Course Themes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Berlin, Germany
Berlin 1945
[object Object],[object Object],[object Object],Source: George Mason University Libraries Special Collections and Archives
 
 
 
 
Source:  Accessed at  www.urban-age.net  on 10/19/09
Source:  Accessed at  www.urban-age.net  on 10/19/09
Source:  Accessed at  www.urban-age.net  on 10/19/09
Source:  Accessed at  www.urban-age.net  on 10/19/09
Source:  Accessed at  www.urban-age.net  on 10/19/09
unemployment
Source:  Statistisches Landesamt Berlin, accessed 10/19/09 at  berlin.group.shef.ac.uk/berlin.html
Most of us make at least three important decisions in our lives:  where to live, what to do, and with whom to do it. Daniel Gilbert,  Stumbling on Happiness
Civility means that the diversity of urban life becomes a source of mutual strength rather than a source of estrangement and civic bitterness. In the past this issue has been framed in terms of ethnicity or culture and in the current period of inequality I think it needs to be increasingly framed in terms of economics. Richard Sennett, Professor of Sociology, London School of Economics and Political Science and MIT
Margins: poverty and inequality
poverty is: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
poverty across countries Country (in order of increasing GNP per capita) % of Population below $1 a day Bangladesh 29.1 Kenya 26.5 Sri Lanka 6.6 Indonesia 7.7 Philippines 14.6 Jamaica 3.2 Paraguay 19.5 Costa Rica 6.9 Malaysia <2 Brazil 9.0
 
less and more poverty in the world
 
inequality across countries Country (in order of increasing GNP per capita) Income share of lowest  40% of households Ratio of highest 20% to lowest 20% Bangladesh 22.9 4.0 Kenya 10.1 18.3 Sri Lanka 22.0 4.4 Indonesia 20.4 5.1 Philippines 15.5 8.4 Jamaica 16.0 8.2 Paraguay 8.2 27.1 Costa Rica 12.8 12.9 Malaysia 12.9 11.7 Brazil 8.2 25.7 United States 16.1 8.5
the more equal vs. less equal
Today there are more part-time and temporary jobs and generally fewer protections and fringe benefits for growing portions of the workforce.  These changes in the employment relation have contributed to reshaping the sphere of social reproduction and consumption, which in turn has a feedback effect on economic organization and earnings…it reproduces growing income disparity, labor market casualization, and consumption restructuring along high- and low-end markets.  Saskia Sassen,  Cities in a World Economy , p. 173
does inequality matter? ,[object Object],[object Object],[object Object],[object Object],[object Object],skeptical view:
[object Object],[object Object],[object Object],economic view: does inequality matter?
[object Object],[object Object],[object Object],[object Object],political and moral views: does inequality matter?
the Lorenz curve
income distribution
Gini coefficient
Gini coefficient
total poverty gap TPG = the amount relative to the poverty line that has to be transferred to poor households to bring their incomes up to the poverty threshold   income distribution
the Kuznets curve time
the “Kuznets process” ,[object Object],[object Object],[object Object]
poverty and inequality under the Kuznets process Inequality Urban population share Total  poverty Rural poverty rate Urban poverty rate
growth leads to less poverty
% poor has declined
drivers of economic growth ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],+ denotes a positive effect in the direction shown ? – + + – – – Source: Gylfason and Zoega (2000)
Does urbanization reduce poverty?
 
rural poorer than urban
migration to cities ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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5 margins-berlin

  • 2.
  • 5.
  • 6.  
  • 7.  
  • 8.  
  • 9.  
  • 10. Source: Accessed at www.urban-age.net on 10/19/09
  • 11. Source: Accessed at www.urban-age.net on 10/19/09
  • 12. Source: Accessed at www.urban-age.net on 10/19/09
  • 13. Source: Accessed at www.urban-age.net on 10/19/09
  • 14. Source: Accessed at www.urban-age.net on 10/19/09
  • 16. Source: Statistisches Landesamt Berlin, accessed 10/19/09 at berlin.group.shef.ac.uk/berlin.html
  • 17. Most of us make at least three important decisions in our lives: where to live, what to do, and with whom to do it. Daniel Gilbert, Stumbling on Happiness
  • 18. Civility means that the diversity of urban life becomes a source of mutual strength rather than a source of estrangement and civic bitterness. In the past this issue has been framed in terms of ethnicity or culture and in the current period of inequality I think it needs to be increasingly framed in terms of economics. Richard Sennett, Professor of Sociology, London School of Economics and Political Science and MIT
  • 19. Margins: poverty and inequality
  • 20.
  • 21.  
  • 22. poverty across countries Country (in order of increasing GNP per capita) % of Population below $1 a day Bangladesh 29.1 Kenya 26.5 Sri Lanka 6.6 Indonesia 7.7 Philippines 14.6 Jamaica 3.2 Paraguay 19.5 Costa Rica 6.9 Malaysia <2 Brazil 9.0
  • 23.  
  • 24. less and more poverty in the world
  • 25.  
  • 26. inequality across countries Country (in order of increasing GNP per capita) Income share of lowest 40% of households Ratio of highest 20% to lowest 20% Bangladesh 22.9 4.0 Kenya 10.1 18.3 Sri Lanka 22.0 4.4 Indonesia 20.4 5.1 Philippines 15.5 8.4 Jamaica 16.0 8.2 Paraguay 8.2 27.1 Costa Rica 12.8 12.9 Malaysia 12.9 11.7 Brazil 8.2 25.7 United States 16.1 8.5
  • 27. the more equal vs. less equal
  • 28. Today there are more part-time and temporary jobs and generally fewer protections and fringe benefits for growing portions of the workforce. These changes in the employment relation have contributed to reshaping the sphere of social reproduction and consumption, which in turn has a feedback effect on economic organization and earnings…it reproduces growing income disparity, labor market casualization, and consumption restructuring along high- and low-end markets. Saskia Sassen, Cities in a World Economy , p. 173
  • 29.
  • 30.
  • 31.
  • 36. total poverty gap TPG = the amount relative to the poverty line that has to be transferred to poor households to bring their incomes up to the poverty threshold  income distribution
  • 38.
  • 39. poverty and inequality under the Kuznets process Inequality Urban population share Total poverty Rural poverty rate Urban poverty rate
  • 40. growth leads to less poverty
  • 41. % poor has declined
  • 42.
  • 44.  
  • 46.