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Global inequality and the global inequality extraction ratio: the story of the past two centuries

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Author Info
Milanovic, Branko

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Abstract

Using social tables, the author makes an estimate of global inequality (inequality among world citizens) in the early 19th century. The analysis shows that the level and composition of global inequality have changed over the past two centuries. The level has increased, reaching a high plateau around the 1950s, and the main determinants of global inequality have become differences in mean country incomes rather than inequalities within nations. The inequality extraction ratio (the percentage of total inequality that was extracted by global elites) has remained surprisingly stable, at around 70 percent of the maximum global Gini, during the past 100 years.

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Publisher Info
Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5044.

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Date of creation: 01 Sep 2009
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Handle: RePEc:wbk:wbrwps:5044

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Related research
Keywords: Inequality; Poverty Impact Evaluation; Equity and Development; Services&Transfers to Poor; Access to Finance;

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  1. Prados De La Escosura, Leandro, 2008. "Inequality, poverty and the Kuznets curve in Spain, 1850?2000," European Review of Economic History, Cambridge University Press, vol. 12(03), pages 287-324, December. [Downloadable!]
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  2. Branko Milanovic, 2006. "An Estimate Of Average Income And Inequality In Byzantium Around Year 1000," Review of Income and Wealth, Blackwell Publishing, vol. 52(3), pages 449-470, 09. [Downloadable!] (restricted)
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This page was last updated on 2009-12-16.

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