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Global interpersonal inequality Trends and measurement

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  • Niño-Zarazúa, Miguel
  • Roope, Laurence
  • Tarp, Finn

Abstract

This paper discusses different approaches to the measurement of global interpersonal in equality. Trends in global interpersonal inequality during 1975-2005 are measured using data from UNU-WIDER’s World Income Inequality Database. In order to better understand the trends, global interpersonal inequality is decomposed into within-country and between-country inequality. The paper illustrates that the relationship between global interpersonal inequality and these constituent components is a complex one. In particular, we demonstrate that the changes in China's and India's income distributions over the past 30 years have simultaneously caused inequality to rise domestically in those countries, while tending to reduce global inter-personal inequality. In light of these findings, we reflect on the meaning and policy relevance of global vis-à- vis domestic inequality measures.

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  • Niño-Zarazúa, Miguel & Roope, Laurence & Tarp, Finn, 2014. "Global interpersonal inequality Trends and measurement," MPRA Paper 52881, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:52881
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    2. Anthony Shorrocks & James Davies, 2018. "Comparing global inequality of income and wealth," WIDER Working Paper Series 160, World Institute for Development Economic Research (UNU-WIDER).
    3. Katharina Trapp, 2015. "Measuring the Labour Income Share of Developing Countries: Learning from Social Accounting Matrices," WIDER Working Paper Series wp-2015-041, World Institute for Development Economic Research (UNU-WIDER).
    4. Amarante, Verónica & Galván, Marco & Mancero, Xavier, 2016. "Inequality in Latin America: a global measurement," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    5. Peter Edward & Andy Sumner, 2015. "New estimates of global poverty and inequality: How much difference do price data," Working Papers 365, ECINEQ, Society for the Study of Economic Inequality.
    6. Evan Rosevear & Michael Trebilcock & Mariana Mota Prado, 2021. "The New Progressivism and its implications for institutional theories of development," Development Policy Review, Overseas Development Institute, vol. 39(4), pages 644-664, July.
    7. Andy Sumner, 2019. "Global Poverty and Inequality: Change and Continuity in Late Development," Development and Change, International Institute of Social Studies, vol. 50(2), pages 410-425, March.
    8. James B. Davies & Anthony F. Shorrocks, 2018. "Comparing global inequality of income and wealth," WIDER Working Paper Series wp-2018-160, World Institute for Development Economic Research (UNU-WIDER).
    9. Amarante, Verónica & Colacce, Maira, 2018. "More unequal or less? A review of global, regional and national income inequality," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.

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    More about this item

    Keywords

    global interpersonal inequality; inequality; inequality measurement;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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