Chain of analysis · Poverty and inequality

Rising income inequality → Development

Edexcel 9EC0 4.2.2 · 4.3AQA A level 4.1.7.1 · 4.2.6.5
ChainWhat it assumes · how to break it
Start
Income and wealth inequality rise, so children from the poorest families grow up with far fewer resources than those from the richest.
1
As a result, poorer families cannot afford good housing, nutrition or extra tuition, or to support their children through further education.
inequality of opportunity
Best link to attack
Assumes: Public services do not make up for gaps in family income.
But: Free state education, healthcare and school meals can offset much of the gap in family resources.
2
This means children from low-income families gain fewer qualifications and skills than equally able children from richer families, so their human capital is lower.
human capital
Assumes: Family resources drive educational results.
But: School quality and peer groups also matter, and a good local school can close much of the gap.
3
Consequently, social mobility falls, as parents' income predicts their children's adult income more closely and talent is wasted.
social mobility
Assumes: Careers depend on education gained in childhood.
But: Apprenticeships, adult education and retraining give later chances to move up.
4
In addition, wider income gaps are linked with worse health and lower life expectancy in poorer areas, lowering wellbeing and HDI.
HDI · living standards
Assumes: The gap itself causes worse outcomes.
But: The link may reflect low income itself rather than the size of the gap, so the effect of inequality is hard to separate from that of poverty.
End
Social mobility falls and human development is held back, especially through weaker education and health for the poorest.
Evaluation chainattacks link 1 · Assumptions
  1. E1However, the effect on mobility depends on how far public services make up for gaps in family income.
  2. E2When high-quality schools, healthcare and early years support are free for all, children's life chances depend less on their parents' income.
  3. E3As a result, inequality of outcome need not become inequality of opportunity, and talent from poorer families is still developed.
  4. E4So rising inequality harms development and mobility most where public services are weak, as in many emerging and developing economies, and less where they are strong.
Another way to attack it: The Kuznets curve suggests inequality tends to rise in the early stages of development as workers move from farming to higher-paid industry, so rising inequality can go alongside falling absolute poverty.
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Questions this answers

  • Assess the impact of rising inequality on social mobility.
  • Discuss the extent to which inequality limits development in emerging economies.
  • Explain why inequality of income can lead to inequality of opportunity.

Diagram

No standard diagram. Use HDI components or measures of social mobility as evidence; the Kuznets curve can show inequality against income per head.

Reverse and related

Falling inequality → poorer families can invest more in children's education and health → social mobility and development improve.

GCSE version

  1. StartThe gap between rich and poor families grows.
  2. 1Poorer families have much less money than rich families.
  3. 2Their children get less education and have worse health.
  4. 3They find it harder to get good jobs, so the gap carries on into the next generation.

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