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Inequality convergence

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Author Info
Ravallion, Martin

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Abstract

Comparing changes in inequality with initial levels, using new data, the author finds that within-country inequality in income or per capita consumption is converging toward medium levels--a Gini index around 40 percent. The finding is robust to allow for serially independent measurement error in inequality data and for short-run dynamics around longer-term trends. However, the convergence process is neither rapid nor certain, and more observations over time are needed to be confident of the pattern. The author offers an approach to modeling the determinants of inequality that may be a starting point for estimating richer models.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2645.

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Date of creation: 31 Jul 2001
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Handle: RePEc:wbk:wbrwps:2645

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Related research
Keywords: Poverty Impact Evaluation; Payment Systems&Infrastructure; Services&Transfers to Poor; Statistical&Mathematical Sciences; Economic Theory&Research; Inequality; Poverty Impact Evaluation; Governance Indicators; Achieving Shared Growth; Rural Poverty Reduction;

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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. Durlauf, Steven N. & Quah, Danny T., 1999. "The new empirics of economic growth," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 4, pages 235-308 Elsevier. [Downloadable!] (restricted)
    Other versions:
  2. 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.
    Other versions:
  3. Roland Bénabou, 1996. "Inequality and Growth," NBER Chapters, in: NBER Macroeconomics Annual 1996, Volume 11, pages 11-92 National Bureau of Economic Research, Inc. [Downloadable!]
    Other versions:
  4. 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.
  5. Bruno, Michael & Ravallion, Martin & Squire, Lyn, 1996. "Equity and growth in developing countries : old and new perspectives on the policy issues," Policy Research Working Paper Series 1563, The World Bank. [Downloadable!]
  6. 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)
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(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. Mitra, Pradeep & Yemtsov, Ruslan, 2006. "Increasing inequality in transition economies : is there more to come?," Policy Research Working Paper Series 4007, The World Bank. [Downloadable!]
  2. Zhang, Yin & Wan, Guanghua, 2006. "Globalization and the Urban Poor in China," Working Papers RP2006/42, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
    Other versions:
  3. Heshmati, Almas, 2004. "A Review of Decomposition of Income Inequality," IZA Discussion Papers 1221, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Heshmati, Almas, 2004. "Continental and Sub-Continental Income Inequality," IZA Discussion Papers 1271, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. Heshmati, Almas, 2004. "Data Issues and Databases Used in Analysis of Growth, Poverty and Economic Inequality," IZA Discussion Papers 1263, Institute for the Study of Labor (IZA). [Downloadable!]
  6. Michael Bleaney & Akira Nishiyama, 2003. "Convergence in income inequality: differences between advanced and developing countries," Economics Bulletin, Economics Bulletin, vol. 4(22), pages 1-10. [Downloadable!]
  7. Claudio Agostini & Phillip Brown, 2007. "Local Distributional Effects of Government Cash Transfers in Chile," ILADES-Georgetown University Working Papers inv181, Ilades-Georgetown University, School of Economics and Bussines. [Downloadable!]
    Other versions:
  8. Rolf Maier, 2005. "Trade Policy and Pro-Poor Growth," International Trade 0504007, EconWPA. [Downloadable!]
  9. Kraay, Aart, 2004. "When is growth pro-poor? Cross-country evidence," Policy Research Working Paper Series 3225, The World Bank. [Downloadable!]
    Other versions:
  10. Bussolo, Maurizio & De Hoyos, Rafael E. & Medvedev, Denis, 2008. "Is the developing world catching up ? global convergence and national rising dispersion," Policy Research Working Paper Series 4733, The World Bank. [Downloadable!]
  11. Heshmati, Almas, 2004. "Growth, Inequality and Poverty Relationships," IZA Discussion Papers 1338, Institute for the Study of Labor (IZA). [Downloadable!]
  12. Ali Abdel Gadir Ali, . "Globalization and Inequality in the Arab Region," API-Working Paper Series 0307, Arab Planning Institute - Kuwait, Information Center. [Downloadable!]
  13. Ali Abdel Gadir Ali, . "The Political Economy of Inequality in the Arab Region and Relevant Development Policies," API-Working Paper Series 0904, Arab Planning Institute - Kuwait, Information Center. [Downloadable!]
  14. Heshmati, Almas, 2004. "The World Distribution of Income and Income Inequality," IZA Discussion Papers 1267, Institute for the Study of Labor (IZA). [Downloadable!]
  15. Gomes, Fábio A. R., 2007. "Convergence in Income Inequality: the Case of Brazilian Municipalities," Ibmec Working Papers wpe_90, Ibmec Working Paper, Ibmec São Paulo. [Downloadable!]
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