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The Changing Shape of Global Inequality - exploring a new dataset

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Author Info

  • Jan Luiten van Zanden

    ()
    (Utrecht University)

  • Joerg Baten
  • Peter Foldvari
  • Bas van Leeuwen

Abstract

A new dataset for estimating the development of global inequality between 1820 and 2000 is presented, based on a large variety of sources and methods for estimating (gross household) income inequality. On this basis, and two sets of benchmarks for estimating between-country inequality (the Maddison 1990 benchmark and the recent 2005 ICP round), we estimate the evolution of global income inequality and of the number of people below various poverty lines over the past two centuries. We find that between 1820 and 1950 increasing per capita income is combined with increasing global inequality, and with an increase in the absolute number of people below the poverty line. After 1950 global inequality as measured by the Gini coefficient remains more or less constant, and also the number of poor starts to decline in absolute terms. It also appears that the global income distribution was uni-modal in the 19th century, became increasingly bi-modal between 1910 and 1970 with two world wars, a depression and de-globalization, and was suddenly transformed back into a uni-modal distribution between 1980 and 2000.

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File URL: http://www.cgeh.nl/sites/default/files/WorkingPapers/CGEH.WP_.No1_.Vanzandenetal.jan2011_0.pdf
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Bibliographic Info

Paper provided by Utrecht University, Centre for Global Economic History in its series Working Papers with number 0001.

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Length: 48 pages
Date of creation: Jul 2011
Date of revision:
Handle: RePEc:ucg:wpaper:0001

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Postal: University of Utrecht, Drift 10, The Netherlands
Web page: http://www.cgeh.nl
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Related research

Keywords: income inequality; historical development; world; regional development; Gini; global inequality; poverty lines; per capita income; income distribution;

References

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  1. Richard H. Steckel, 1995. "Stature and the Standard of Living," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1903-1940, December.
  2. Dowrick, S. & Quigguin, J., 1992. "International Comparisons of Living Standards and Tastes: A Revealed Preference Analysis," CEPR Discussion Papers 277, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  3. Francois, Joseph F. & Rojas-Romagosa, Hugo, 2005. "The construction and interpretation of combined cross-section and time-series inequality datasets," Policy Research Working Paper Series 3748, The World Bank.
  4. Bas van Leeuwen & Peter Foldvari, 2012. "The development of inequality and poverty in Indonesia, 1932-1999," Working Papers 0026, Utrecht University, Centre for Global Economic History.
  5. Angus Deaton, 2001. "Relative Deprivation, Inequality, and Mortality," NBER Working Papers 8099, National Bureau of Economic Research, Inc.
  6. Leandro Prados de la Escosura, 2007. "Inequality, poverty, and the Kuznets curve In Spain, 1850-2000," Working Papers in Economic History wp07-13, Universidad Carlos III, Departamento de Historia Económica e Instituciones.
  7. Alvaredo, Facundo & Saez, Emmanuel, 2009. "Income and Wealth Concentration in Spain from a Historical and Fiscal Perspective," Institute for Research on Labor and Employment, Working Paper Series qt4017h9q3, Institute of Industrial Relations, UC Berkeley.
  8. Allen, Robert C., 2001. "The Great Divergence in European Wages and Prices from the Middle Ages to the First World War," Explorations in Economic History, Elsevier, vol. 38(4), pages 411-447, October.
  9. Luis Bertola & Cecilia Castelnovo & Javier Rodriguez & Henry Willebald, 2008. "Income distribution in the Latin American Southern Cone during the first globalization boom, ca: 1870-1920," Working Papers in Economic History wp08-05, Universidad Carlos III, Departamento de Historia Económica e Instituciones.
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Citations

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Cited by:
  1. Kourtellos, Andros & Stylianou, Ioanna & Tan, Chih Ming, 2013. "Failure to launch? The role of land inequality in transition delays," European Economic Review, Elsevier, vol. 62(C), pages 98-113.
  2. Van Leeuwen, Bas & van Leeuwen-Li, Jieli & Foldvari, Peter, 2012. "Education as a driver of income inequality in twentieth-century Africa," MPRA Paper 43574, University Library of Munich, Germany.
  3. Thomas Goda, 2013. "Changes in income inequality from a global perspective: an overview," Working Papers PKWP1303, Post Keynesian Economics Study Group (PKSG).

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