Global inequality recalculated : the effect of new 2005 PPP estimates on global inequality
AbstractThe results of new direct price level comparisons across 148 countries in 2005 have led to large revisions of purchasing power parity exchanges rates, particularly for China and India. The recalculation of international and global inequalities, using the new purchasing power parity rates, shows that inequalities are substantially higher than previously thought. Inequality between global citizens is estimated at 70 Gini points rather than 65 as before. The richest decile receives 57 percent of global income rather than 50 percent.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 5061.
Date of creation: 01 Sep 2009
Date of revision:
Inequality; Poverty Impact Evaluation; Emerging Markets; Equity and Development; Economic Theory&Research;
Other versions of this item:
- Milanovic, Branko, 2009. "Global inequality recalculated: The effect of new 2005 PPP estimates on global inequality," MPRA Paper 16538, University Library of Munich, Germany.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- I3 - Health, Education, and Welfare - - Welfare and Poverty
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-10-03 (All new papers)
- NEP-CWA-2009-10-03 (Central & Western Asia)
- NEP-DEV-2009-10-03 (Development)
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