Economics of Income Inequality and Poverty - JEM345

• Title: Economics of Income Inequality and Poverty
• Czech title: Economics of Income Inequality and Poverty
• Form of teaching: lecture+seminar
• Guaranteed by: Institute of Economic Studies (23-IES)
• Faculty: Faculty of Social Sciences
• Actual: from 2026
• Duration in semesters: 1
• Semester: winter
• E-Credits: 3
• Examination process: winter s.:
• Hours per week, examination: winter s.:6/0, C [HS]
• Capacity: unlimited / unknown (unknown)
• Maximum number of enrolled students: unlimited
• Min. number of students: unlimited
• 4EU+: no
• Virtual mobility / capacity: no
• State of the course: taught
• Language: English
• Teaching methods: full-time
• Repeated enrollment: 2 / 2 / 1 / 2
• Note: course can be enrolled in outside the study plan; enabled for web enrollment; priority enrollment if the course is part of the study plan
• Guarantor: PhDr. Mgr. Jana Votápková, Ph.D.
• Teacher(s): Bc. Anna Řeháková; PhDr. Mgr. Jana Votápková, Ph.D.

Annotation

Compact course will be taught by Michael Chletsos, Professor of Economic Analysis, University of Piraeus, Greece

credits 3
For whom both MA and BA students (BA students may get it later approved as an MA
course)
Dates: Monday September 21: 9-10.30, 11-12.30
Tuesday September 22: 9-10.30, 11-12.30
Wednesday September 23: 9-10.30, 11-12.30

A final test (multiple-choice) will take place in the last class on September 23,2026

Room: IES, Opletaova 26, Prague, room 314


Economic and social inequalities constitute a fundamental issue in both economics and
political science. In recent years, we have observed a widening of economic inequalities and
poverty, along with the emergence of new forms of inequality, particularly social inequalities.
The ways in which the state influences economic inequality and poverty differ not only between
developing and developed countries, but also among developed countries themselves. The
purpose of this course is to highlight contemporary economic and social inequalities and
poverty, to examine the factors that shape them, to analyze the relationship between economic
growth, inequality, and poverty, and to explore how the state intervenes to reduce economic
and social inequalities.

Last update: Votápková Jana, PhDr. Mgr., Ph.D. (27.05.2026)

Aim of the course

With the completion of the course students will be supposed to be possible to know and to
comprehend:
 The concept and the way to measure economic and social inequalities
 The concept and the way of measuring poverty
 The historical development of inequalities and poverty
 The structure of inequalities and poverty
 The relationship between economic inequalities and economic development
 The relationship between globalization and economic inequalities
 The impact of fiscal policy on economic inequalities
 The causes and economic and social impact of poverty

 The relationship between poverty and social exclusion
 The relationship between political institutions and income redistribution
 The ideology of income redistribution
 The ways of combating poverty and the effectiveness of poverty programs

Last update: Votápková Jana, PhDr. Mgr., Ph.D. (27.05.2026)

Course completion requirements

Requirements:

-        Attendance

-        Multiple-choice graded as pass/fail in the last class on September 23

o   Minimum requirement to pass is 50 %

Last update: Votápková Jana, PhDr. Mgr., Ph.D. (27.05.2026)

Literature

1.      Barr N. (2003). Economics of the welfare state, Oxford University Press

2.      Atkinson, A.B. (2015). Inequality: what can be done?  Harvard University Press

3.      Piketty, T. (2004). L’ economie des inegalites, La Decouverte.

4.      Milanovic, B. (2016). Global inequality: a new approach for the age of globalization, Harvard University Press.

Last update: Votápková Jana, PhDr. Mgr., Ph.D. (27.05.2026)

Course assessment methods and requirements for successful completion, grading scheme

Pass/fail

Last update: Votápková Jana, PhDr. Mgr., Ph.D. (27.05.2026)

Syllabus

Topics

Lecture 1 – Measuring  and Defining Economic Inequality

·        Defining Inequality

• income, wealth, opportunity
• horizontal vs vertical inequality
• equality of outcome vs equality of opportunity

·        Measurement of Inequality

• Lorenz curve
• Gini coefficient
• income shares and percentile ratios
• Palma ratio
• data sources and comparability

·        Within-country vs Between-country Inequality

• global inequality trends
• convergence vs divergence

Lecture 2 – Inequality, Economic Development and Globalization

·        Economic Development and Inequality

• structural transformation
• sectoral shifts
• urbanization

·        The Kuznets Hypothesis

• inverted-U relationship
• empirical reassessments

·        Globalization, Technology and Labour Markets

• trade openness
• skill-biased technological change
• capital mobility
• financialization

·        Inequality in Advanced vs Developing Economies

 

Lecture 3 – Structure of Inequality and Intergenerational Mobility

·        Structure of Inequality

• education
• gender
• region
• occupation

·        Theories of Distribution of Income

• Functional vs Personal Distribution
• Neoclassical vs institutional and political economy approaches

·        Intergenerational Mobility

• human capital transmission
• mobility indicators
• persistence of inequality

 

Lecture 4 – Transmission Mechanisms: Inequality, Health and Education

·        Economic Inequality and Health

• income inequality and health outcomes
• relative income hypothesis
• social determinants of health
• health gradients
• life expectancy differences
• public health systems and redistribution

·        Economic Inequality and Education

• inequality of opportunity
• family background and educational attainment
• returns to education
• skill-biased technological change
• education as equalizer vs reproducer of inequality

Lecture 5 – Poverty: Concepts, Measurement and Causes

• Definition of poverty
• absolute vs relative poverty
• Measurement of poverty
• poverty lines
• headcount ratio
• poverty gap
• Causes and consequences of poverty

 

Lecture 6 – Public Policy, Redistribution and Anti-Poverty Programs

• Redistribution and public policy
• Political institutions and redistribution
• Ideology of redistribution
• Efficiency and effectiveness of anti-poverty programs
• Targeting vs universality

 

Last update: Votápková Jana, PhDr. Mgr., Ph.D. (27.05.2026)