This course delves into a substantial body of empirical studies highlighting the detrimental impact of income inequality on social, economic, and environmental sustainability. We critically evaluate key contributions to this literature, commencing with a brief exploration of methodological challenges and fundamental principles of causal identification. We then analyze global trends in income inequality across countries, and also briefly discuss inequality by gender and ethnicity. The core segment of the course centers on detailed studies examining the consequences of escalating income inequality. These studies investigate its effects on diverse outcomes, including crime rates, household consumption and debt, innovation dynamics, and environmental conditions. In the final section, we assess the underlying factors driving income inequality and explore policy options available to policymakers aimed at mitigating high levels of inequality. Through rigorous analysis and critical evaluation, this course provides a comprehensive understanding of the complexities surrounding income inequality and its broad societal implications.

Examination-immanent courses (PI) are compulsory. A minimum attendance of 80% is required. In case of absence, please inform the lecturer in advance. No makeup assignments will be provided in case of missed assessments. The first three sections are particularly important and attendance is essential.

• Student-led group presentation (40%)
• Prepared comment on student-led group presentation (10%)
• Discussion questions on assigned readings (10%)
• Short quizzes on previous topics (20%) 
• Participation in class (20%)