Task 3.0: Contribution to light review (D2)
Task 3.1: Uniform approach to income inequality
1) Construction of various internationally comparable indicators regarding different sources of income (individual or household income, wealth, wage earnings, transfers, pensions and capital income, before or after tax, including or excluding social transfers)
2) Discuss various issues of measurement (indexes: Gini or any other decomposable index satisfying standard properties; decomposition according to income sources and/or recipients (in cross-section and/or in time series analysis); provision of measures of intertemporal association (intergenerational elasticities, rank correlations) as measure of the degree of inequality of opportunities.
Task 3.2: Understanding relationship income inequalities ⇔ impacts
3) Analysis of different mechanisms shaping different parts of the distribution for wage earnings at the top (i.e. technological change, social norms) and bottom of the distribution (minimum wages, influence of unions).
4) Analysis of the link between joblessness and income inequality and the reverse. Since labour incomes are the main determinants of household incomes, we aim to understand whether feed-backs from income to employability help to reinforce inequality persistence.
5) Analysis of the link between the dispersion of actual household incomes and consumer demand, often taken as a test of the permanent income hypothesis. It deals with the problem whether politicians should be more concerned with consumption or income inequalities.
6) An analysis of how gender differences in earnings may drive the allocation of domestic work within the household. In fact more unequal or more compressed distributions of income may affect not only demand but also labour supply.
7) Identification of policy options with regard to income inequalities and their impacts
Task 3.3: Uniform approach to educational inequality
8) Construction of indicators of educational inequality, considering both quantity/quality dimensions, and taking into account the categorical nature of the educational attainments,
9) Maps of current educational inequalities, based on individual data on competences, disaggregated by gender/ location/parental background in the young population, using data from students’ testing on competences.
10) Maps of current educational inequalities, based on individual data, disaggregated by gender/ age/ location/ parental background in the adult population, using data on educational attainments, school continuation, and (when available) on competences and capabilities (proxied by participation in social life),
11) Construction of indicators of salient features of educational systems, which are expected to be related to the inequality-reducing aim of education (early childcare, class size and formation, school admission, resource availability, teachers motivation, remedial programs, school choice, compulsory education, tracking and/or streaming, students’ assessment)
Task 3.4: Understanding relationship educational inequalities ⇔ impacts
12) Analysis of correlation between individual educational attainment and corresponding parental background, mediated by existing institutional framework. When available, exploit cohort effects to identify changes over time
13) Identification of the “educational inequality minimizing set of institutions” – cross-country comparisons of existing institutional clusters and historical account, in order to trace out social forces supporting these combinations
14) Identification of policy options which may lead in the direction of reduction of educational inequality. In particular three potential reforms: enlarging free access to tertiary education; expanding child care access; reducing the stratification of secondary school systems.
The work will be carried out by the core teams in the participating institutions, the country experts, and the associate experts providing invited papers. The co-ordinators in UvA and Unimi will ensure that the research proceeds in a structured fashion, that there is exchange and collaboration among participants, in particular via the website facility accessible to all research members, where inequality indicators, institutional indexes and standardised data on income and education national distributions are downloadable. The process will be supported by the following Discussion Papers.


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