Global inequality recalculated: The effect of new 2005 PPP estimates on global inequality
AbstractThe results of new direct price level comparisons across 146 countries in 2005 have led to large revisions of PPP (purchasing power parity) exchanges rates, particularly for China and India. The recalculation of international and global inequalities, using the new PPPs, shows that inequalities are substantially higher than previously thought. Inequality between global citizens is estimated at 70 Gini points rather than 65 as before. The richest decile receives 57 percent of global income rather than 50 percent.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 16538.
Date of creation: 30 Jul 2009
Date of revision:
Global inequality; Purchasing power parity;
Other versions of this item:
- Milanovic, Branko, 2009. "Global inequality recalculated : the effect of new 2005 PPP estimates on global inequality," Policy Research Working Paper Series 5061, The World Bank.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-08-08 (All new papers)
- NEP-CWA-2009-08-08 (Central & Western Asia)
- NEP-IFN-2009-08-08 (International Finance)
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