Income Distribution Dynamics and Pro-Poor Growth in the World from 1970 to 2003
AbstractWe estimate and analyze the global income distribution from national log-normal income distributions for the years 1970 to 2003, as well as the income distribution of seven regional subsamples. From these distributions we obtain measures for global and regional inequality and poverty, and find decreasing global poverty and inequality during the time period. By decomposing inequality into within and between country inequality using Theils’ measure of inequality, we observe declining inequality between countries whereas overall inequality within countries increased. Furthermore, we calculate growth incidence curves for five year periods between 1970 and 2003, as well as a growth incidence curve for the entire period and corresponding rates of pro-poor growth. In the global income distribution, the 8.5th to 63.5th global income percentiles experienced above average percentile growth rates, while the remaining very lowest quantiles experienced also the lowest percentile growth rates. Using the regional decomposition we find that while in 1970 more than half of the worlds extreme poor and poor people lived in East Asia, it is Sub-Saharan Africa where nowadays two thirds of the extreme poor and half of the worlds poor live.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Ibero-America Institute for Economic Research in its series Ibero America Institute for Econ. Research (IAI) Discussion Papers with number 161.
Length: 34 pages
Date of creation: 11 Sep 2007
Date of revision:
Contact details of provider:
Postal: Platz des Göttinger Sieben 3, 37073 Göttingen
Phone: 0049-551-39 81 72
Fax: 0049-551-39 81 73
Web page: http://www.iai.wiwi.uni-goettingen.de
More information through EDIRC
Global income distribution; poverty; inequality; growth incidence curves; pro-poor growth convergence;
Find related papers by JEL classification:
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
- I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- F01 - International Economics - - General - - - Global Outlook
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-11-24 (All new papers)
- NEP-DEV-2007-11-24 (Development)
- NEP-LTV-2007-11-24 (Unemployment, Inequality & Poverty)
- NEP-SEA-2007-11-24 (South East Asia)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Angus Deaton, 2003.
"Measuring Poverty in a Growing World (or Measuring Growth in a Poor World),"
NBER Working Papers
9822, National Bureau of Economic Research, Inc.
- Angus Deaton, 2005. "Measuring Poverty in a Growing World (or Measuring Growth in a Poor World)," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 1-19, February.
- Angus Deaton, 2004. "Measuring poverty in a growing world (or measuring growth in a poor world)," Working Papers 178, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
- Xavier Sala-i-Martin, 2001.
"The disturbing 'rise' of global income inequality,"
Economics Working Papers
616, Department of Economics and Business, Universitat Pompeu Fabra, revised Apr 2002.
- Xavier Sala-i-Martin, 2002. "The disturbing "rise" of global income inequality," Discussion Papers 0102-44, Columbia University, Department of Economics.
- Xavier Sala-i-Martin, 2002. "The Disturbing "Rise" of Global Income Inequality," NBER Working Papers 8904, National Bureau of Economic Research, Inc.
- Martin Ravallion, 2004.
"The Debate on Globalization, Poverty and Inequality: why Measurement Matters,"
QA - Rivista dell'Associazione Rossi-Doria,
Associazione Rossi Doria, issue 1, March.
- Ravallion, Martin, 2003. "The debate on globalization, poverty, and inequality : why measurement matters," Policy Research Working Paper Series 3038, The World Bank.
- Bernard, Andrew B & Jones, Charles I, 1996. "Technology and Convergence," Economic Journal, Royal Economic Society, vol. 106(437), pages 1037-44, July.
- Sala-i-Martin, Xavier X, 1996.
"The Classical Approach to Convergence Analysis,"
Royal Economic Society, vol. 106(437), pages 1019-36, July.
- Xavier Sala-i-Martin, 1995. "The classical approach to convergence analysis," Economics Working Papers 117, Department of Economics and Business, Universitat Pompeu Fabra.
- Sala-i-Martin, Xavier, 1995. "The Classical Approach to Convergence Analysis," CEPR Discussion Papers 1254, C.E.P.R. Discussion Papers.
- Sala-i-martin, X., 1995. "The Classical Approach to Convergence Analysis," Papers 734, Yale - Economic Growth Center.
- Ravallion, Martin & Shaohua Chen, 2001.
"Measuring pro-poor growth,"
Policy Research Working Paper Series
2666, The World Bank.
- Quah, Danny T, 1996.
"Twin Peaks: Growth and Convergence in Models of Distribution Dynamics,"
Royal Economic Society, vol. 106(437), pages 1045-55, July.
- Quah, Danny, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEPR Discussion Papers 1355, C.E.P.R. Discussion Papers.
- Ravallion, Martin, 2004. "Competing concepts of inequality in the globalization debate," Policy Research Working Paper Series 3243, The World Bank.
- Angus Deaton, 2005. "ERRATUM: Measuring Poverty in a Growing World (or Measuring Growth in a Poor World)," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 395-395, May.
- Milanovic, Branko, 2006.
"Global income inequality : what it is and why it matters,"
Policy Research Working Paper Series
3865, The World Bank.
- Branko Milanovic, 2005. "Global Income Inequality: What It Is And Why It Matters?," HEW 0512001, EconWPA.
- Branko Milanovic, 2006. "Global Income Inequality: What It Is And Why It Matters?," Working Papers 26, United Nations, Department of Economics and Social Affairs.
- T. Paul Schultz, 1998.
"Inequality in the distribution of personal income in the world: How it is changing and why,"
Journal of Population Economics,
Springer, vol. 11(3), pages 307-344.
- Schultz, T.P., 1998. "Inequality in the Distribution of Personal Income in the World: How It Is Changing and Why," Papers 784, Yale - Economic Growth Center.
- Galor, Oded, 1996.
"Convergence? Inferences from Theoretical Models,"
CEPR Discussion Papers
1350, C.E.P.R. Discussion Papers.
- Mankiw, N Gregory & Romer, David & Weil, David N, 1992.
"A Contribution to the Empirics of Economic Growth,"
The Quarterly Journal of Economics,
MIT Press, vol. 107(2), pages 407-37, May.
- François Bourguignon, 2005. "Comment on "Measuring Poverty in a Growing World (or Measuring Growth in a Poor World)" by Angus Deaton," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 20-22, February.
- Charles I. Jones, .
"On the Evolution of the World Income Distribution,"
97009, Stanford University, Department of Economics.
- Danny Quah, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEP Discussion Papers dp0280, Centre for Economic Performance, LSE.
- Kremer, Michael & Onatski, Alexei & Stock, James, 2001.
"Searching for prosperity,"
Carnegie-Rochester Conference Series on Public Policy,
Elsevier, vol. 55(1), pages 275-303, December.
- Theil, Henri & Theil, Henri, 1979. "World income inequality and its components," Economics Letters, Elsevier, vol. 2(1), pages 99-102.
- Wade, Robert Hunter, 2004. "Is Globalization Reducing Poverty and Inequality?," World Development, Elsevier, vol. 32(4), pages 567-589, April.
- Ravallion, Martin, 2004. "Pro-poor growth : A primer," Policy Research Working Paper Series 3242, The World Bank.
- Theo S Eicher & Cecilia Garcia Penalosa, .
"Inequality and Growth,"
0083, University of Washington, Department of Economics.
- Theo S Eicher & Cecilia Garcia Penalosa, . "Inequality and Growth," Discussion Papers in Economics at the University of Washington 0083, Department of Economics at the University of Washington.
- Chotikapanich, Duangkamon & Valenzuela, Rebecca & Rao, D S Prasada, 1997. "Global and Regional Inequality in the Distribution of Income: Estimation with Limited and Incomplete Data," Empirical Economics, Springer, vol. 22(4), pages 533-46.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:CitEc Project, subscribe to its RSS feed for this item.
- Thomas Goda, 2013. "Changes in income inequality from a global perspective: an overview," Working Papers PKWP1303, Post Keynesian Economics Study Group (PKSG).
- Jiandong Chen & Dai Dai & Ming Pu & Wenxuan Hou & Qiaobin Feng, 2010. "The trend of the Gini coefficient of China," Brooks World Poverty Institute Working Paper Series 10910, BWPI, The University of Manchester.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sabine Jaep).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.