Income distribution, inequality and poverty

SubjectEconomics YearSenior secondary Curriculum Time100

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Introduction

Students learn about income distribution, inequality and poverty and how they are measured. They learn the difference between absolute and relative poverty and between equity and equality in the distribution of income. They analyse data to draw conclusions about Australia’s distribution of income, trends in the level of inequality and the incidence of relative and absolute poverty.

Australian Curriculum or Syllabus

Topics:

  • The Lorenz curve, the Gini coefficient and the Henderson Poverty Line
  • Absolute and relative poverty
  • Trends in inequality in Australia
  • Distribution of income in Australia
  • Incidence of poverty and absolute poverty in Australia

See also:

Student learning resources

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Explainer

Income distribution, inequality and poverty

 
Close reading guide

Income distribution, inequality and poverty

 
Data sheet

Poverty and the distribution of income in Australia

 
Worksheet

Poverty and the distribution of income in Australia

Suggested activity sequence

This sequence is intended as a framework to be modified and adapted by teachers to suit the needs of a class group. If you assign this activity to a class, your students will be assigned all student resources on their 'My learning' page. You can also hand-pick the resources students are assigned by selecting individual resources when you add a work item to a class in 'My classes'.

  1. Explain that students will be analysing a range of data sets to explore how well Australia is performing in addressing its goal of equity in the distribution of income and a reasonable living standard for all.
  2. Students read the explainer and answer the questions on the close reading guide as they do.
  3. Discuss with students what they have learned.
  4. Students complete the data analysis worksheet. They will need to refer to the data sheet.
  5. As a class, discuss student findings. Ask: Is the government achieving its goal of equity in the distribution of income and a reasonable living standard for all? Why?