Economics of inequality

The purpose of this course is to introduce the students to the empirical methods commonly used to analyze several forms of inequality --- e.g. income inequality, educational inequality, inequality in the labor market, inequality inside the firm --- and the policies that can be undertaken to tackle them. The course is structured in three modules. In a first, more theoretical module, students will learn the main methods used in counterfactual impact evaluation and policy evaluation. Each method will be illustrated through an application with the STATA software. In a second, more applied module, students will learn how to measure poverty and inequality and how to deal with inequality decomposition using STATA and several datasets (e.g., the Luxembourg Income Study, the Bank of Italy's Survey of Household Income and Wealth). The third module will be focused on the analysis of gender inequality. This module will provide an overview of the recent literature in economics on different dimensions of the gender gaps (e.g. the gender pay gap), with a focus on the econometric methods used to evaluate gender differentials and some policies aimed at mitigating them.

By the end of the course students must acquire the following skills: 1) learning the main concepts related to the measurement and analysis of inequality and of the policies aimed at reducing it; 2) learning how to use statistical software and real data to analyze inequality and evaluate public policies which may impact individuals and firms; 3) being able to critically read the academic literature and policy reports related to inequality.