Starter Activity: The Distribution of Wealth

Here is an idea for a starter activity that came from reading this short piece on inequalities of wealth in the United States and some behavioural research done by Dan Ariely (one of our favourite behavioural economists!).

This simple activity can act as a starter for discussion the distribution of wealth - the powerpoint slide can be printed out and given to students to complete either as individuals or as small groups.

1/ Explain that the activity is to estimate the share of national household wealth that goes to five groups of the population - the poorest 20% all across to the richest 20%. Having given it some thought, they have to write in a % number in each box - the sum of the percentages must add up to 100%

2/ Students show their answers and an average estimate for the distribution of wealth from the entire group can be taken

3/ A small prize is suggested for the top two students whose estimates come closest to the official answer based on published data

4/ Move the discussion on to identify what we mean by wealth and the different forms in which wealth can be held

5/ Explore the distinction between wealth and income and get the students to find examples of each

6/ Now repeat the estimation activity but this time ask students to consider the distribution of income rather than wealth (a second slide is available from the PowerPoint deck available below)

* There are lots of extension / independent research activities that flow from this starter. Students could be asked to find data on the distribution of wealth and income from a cluster of different countries.

* Data on the quintile distribution can be used to plot a Lorenz Curve and calculate a Gini Coefficient

* Extended writing could include a discussion about the fairness of wealth inequality and what can and ought to be done to address it

Suggestions for background / enrichment reading

The Wealth Gap - Inequality in Numbers (BBC)

Distribution of personal wealth in the UK (Inland Revenue)

UK personal income and wealth data (ONS)

The Spirit Level: Britain’s new theory of everything? (BBC)

Download the activity

Empty_Buckets_Wealth_Distribution.pptx