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True world income distribution, 1988 and 1993 - first calculations, based on household surveys alone

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Author Info
Milanovic, Branko

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Abstract

The author derives the distribution of individuals'income or expenditures for two years, 1988 and 1993. His is the first paper to calculate world distribution for individuals based entirely on data from household surveys. The data, from 91 countries, are adjusted for differences in purchasing power parity between the countries. Measured by the Gini Index, inequality increased from an already high 63 in 1988 to 66 in 1993. This increase was driven more by rising differences in mean incomes between countries than by rising inequalities within countries. Contributing most to the inequality were rising urban-rural differences in China and the slower growth of rural purchasing-power-adjusted incomes in South Asia than in several large developed market economies.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2244.

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Date of creation: 30 Nov 1999
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Handle: RePEc:wbk:wbrwps:2244

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Keywords: Environmental Economics&Policies; Poverty Impact Evaluation; Poverty Monitoring&Analysis; Economic Theory&Research; Services&Transfers to Poor; Poverty Impact Evaluation; Inequality; Economic Theory&Research; Poverty Monitoring&Analysis; Environmental Economics&Policies;

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References listed on IDEAS
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.:
  1. Roland Benabou, 2000. "Unequal Societies: Income Distribution and the Social Contract," American Economic Review, American Economic Association, vol. 90(1), pages 96-129, March. [Downloadable!] (restricted)
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  10. Lerman, Robert I. & Yitzhaki, Shlomo, 1984. "A note on the calculation and interpretation of the Gini index," Economics Letters, Elsevier, vol. 15(3-4), pages 363-368. [Downloadable!] (restricted)
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  12. Quah, Danny, 1997. "Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs," CEPR Discussion Papers 1586, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  13. Lindbeck, A., 1990. "The Swedish Experience," Papers 482, Stockholm - International Economic Studies.
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  15. Chen, Shaohua & Datt, Gaurav & Ravallion, Martin, 1994. "Is Poverty Increasing in the Developing World?," Review of Income and Wealth, Blackwell Publishing, vol. 40(4), pages 359-76, December.
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  16. Freeman, Richard B, 1995. "Are Your Wages Set in Beijing?," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 15-32, Summer. [Downloadable!] (restricted)
  17. Silber, Jacques, 1989. "Factor Components, Population Subgroups and the Computation of the Gini Index of Inequality," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 107-15, February. [Downloadable!] (restricted)
  18. Wood, Adrian, 1995. "How Trade Hurt Unskilled Workers," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 57-80, Summer. [Downloadable!] (restricted)
  19. Ravallion, Martin & Chen, Shaohua, 1997. "What Can New Survey Data Tell Us about Recent Changes in Distribution and Poverty?," World Bank Economic Review, Oxford University Press, vol. 11(2), pages 357-82, May.
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  20. Grosh, Margaret E & Nafziger, E Wayne, 1986. "The Computation of World Income Distribution," Economic Development and Cultural Change, University of Chicago Press, vol. 34(2), pages 347-59, January.
  21. Bauer, John & Mason, Andrew, 1992. "The Distribution of Income and Wealth in Japan," Review of Income and Wealth, Blackwell Publishing, vol. 38(4), pages 403-28, December.
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  23. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," World Bank Economic Review, Oxford University Press, vol. 10(3), pages 565-91, September.
  24. Li, Hongyi & Squire, Lyn & Zou, Heng-fu, 1998. "Explaining International and Intertemporal Variations in Income Inequality," Economic Journal, Royal Economic Society, vol. 108(446), pages 26-43, January. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, 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.)

  1. Grabiella Berloffa & Maria Luigia Segnana, 2004. "Trade, inequality and pro-poor growth: Two perspectives, one message?," Department of Economics Working Papers 0408, Department of Economics, University of Trento, Italia. [Downloadable!]
  2. Nicolás Garrido & Adriana Marina, 2002. "Income mobility: a characterization in Argentina using archetypes," Estudios de Economia, University of Chile, Department of Economics, vol. 29(1 Year 20), pages 123-138, June. [Downloadable!]
  3. Marco Manacorda & Carolina Sanchez-Paramo & Norbert Schady, 2005. "Changes in Returns to Education in Latin America: the Role of Demand and Supply of Skills," CEP Discussion Papers dp0712, Centre for Economic Performance, LSE. [Downloadable!]
  4. Branko Milanovic, 2003. "The Ricardian Vice: Why Sala-i-Martin’s calculations of world income inequality are wrong," HEW 0305003, EconWPA. [Downloadable!]
  5. Milanovic, Branko, 2003. "Is inequality in Africa really different ?," Policy Research Working Paper Series 3169, The World Bank. [Downloadable!]
  6. Emma Aisbett, 2007. "Why are the Critics So Convinced that Globalization is Bad for the Poor?," NBER Chapters, in: Globalization and Poverty, pages 33-86 National Bureau of Economic Research, Inc. [Downloadable!]
    Other versions:
  7. Milanovic, Branko, 2005. "Half a world : regional inequality in five great federations," Policy Research Working Paper Series 3699, The World Bank. [Downloadable!]
    Other versions:
  8. Adriana Marina, 2000. "Economic convergence of the first and second moment in the provinces of Argentina," Estudios de Economia, University of Chile, Department of Economics, vol. 27(2 Year 20), pages 259-277, December. [Downloadable!]
  9. Dollar, David, 2004. "Globalization, poverty, and inequality since 1980," Policy Research Working Paper Series 3333, The World Bank. [Downloadable!]
    Other versions:
  10. Giovanni Andrea Cornia, 2003. "The Impact of Liberalisation and Globalisation on Income Inequality in Developing and Transitional Economies," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  11. Andrew Sumner, 2006. "Why Are We Still Arguing about Globalisation," Working Papers id:538, esocialsciences.com. [Downloadable!]
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