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Global inequality recalculated : the effect of new 2005 PPP estimates on global inequality

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Author Info
Milanovic, Branko

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Abstract

The 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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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5061.

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Date of creation: 01 Sep 2009
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Handle: RePEc:wbk:wbrwps:5061

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Keywords: Inequality; Poverty Impact Evaluation; Emerging Markets; Equity and Development; Economic Theory&Research;

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  1. Angus Deaton, 2003. "Measuring Poverty in a Growing World (or Measuring Growth in a Poor World)," NBER Working Papers 9822, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Sanjay G. Reddy & Camelia Minoiu, 2005. "Real Income Stagnation of Countries, 1960-2001," Development and Comp Systems 0509004, EconWPA. [Downloadable!]
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  3. Pritchett, Lant, 1997. "Divergence, Big Time," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 3-17, Summer. [Downloadable!] (restricted)
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This page was last updated on 2009-11-25.

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