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True world income distribution, 1988 and 1993: First calculation based on household surveys alo

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Branko milanovic (World Bank)

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Abstract

The paper derives world income or expenditure distribution of individuals for two years 1988 and 1993. It is the first paper to calculate world distribution for individuals based entirely on household survey data from 91 countries, and adjusted for differences in purchasing power parity between the countries. Measured by the Gini index, inequality increased from an already very high 63 in 1988 to 66 in 1993. The increase was driven more by rising differences in mean incomes between the countries than by rising inequalities within countries. The most important contributors were rising urban-rural differences in China, and slow growth of rural incomes in South Asia compared to several large developed market economies.

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Paper provided by EconWPA in its series HEW with number 0305002.

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Date of creation: 09 May 2003
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Handle: RePEc:wpa:wuwphe:0305002

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Keywords: Income inequality; world inequality; globalization;

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Find related papers by JEL classification:
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

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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. Heshmati, Almas, 2004. "A Review of Decomposition of Income Inequality," IZA Discussion Papers 1221, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Heshmati, Almas, 2004. "Continental and Sub-Continental Income Inequality," IZA Discussion Papers 1271, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Camelia Minoiu & Sanjay Reddy, 2008. "Kernel Density Estimation Based on Grouped Data: The Case of Poverty Assessment," IMF Working Papers 08/183, International Monetary Fund. [Downloadable!]
  4. 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!]
  5. Emma Aisbett, 2005. "Why are the Critics so Convinced that Globalization is Bad for the Poor?," NBER Working Papers 11066, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  6. Farhad Noorbakhsh, . "International Convergence and Inequality of Human Development: 1975-2001," Working Papers 2006_3, Department of Economics, University of Glasgow. [Downloadable!]
  7. 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!]
  8. Shorrocks, Anthony & Wan, Guanghua, 2008. "Ungrouping Income Distributions: Synthesising Samples for Inequality and Poverty Analysis," Working Papers RP2008/16, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  9. D.S. Prasada Rao & Alicia Rambaldi & Howard Doran, 2008. "A Method to Construct World Tables of Purchasing Power Parities and Real Incomes Based on Multiple Benchmarks and Auxiliary Information: Analytical and Empirical Results," CEPA Working Papers Series WP052008, School of Economics, University of Queensland, Australia. [Downloadable!]
  10. Heshmati, Almas, 2005. "The Relationship between Income Inequality, Poverty, and Globalization," Working Papers RP2005/37, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
    Other versions:
  11. Davies, James B. & Sandstrom, Susanna & Shorrocks, Anthony & Wolff, Edward N., 2008. "The World Distribution of Household Wealth," Working Papers DP2008/03, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  12. Chotikapanich, Duangkamon & Prasada Rao, D.S. & Tang, KamKi, 2006. "Estimating Income Inequality in China Using Grouped Data and the Generalized Beta Distribution," Working Papers RP2006/134, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
    Other versions:
  13. 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!]
  14. Branko Milanovic, 2003. "The Ricardian Vice: Why Sala-i-Martin’s calculations of world income inequality are wrong," HEW 0305003, EconWPA. [Downloadable!]
  15. William Griffiths, 2008. "On Dagum’s Decomposition of the Gini Coefficient," Department of Economics - Working Papers Series 1054, The University of Melbourne. [Downloadable!]
  16. Bussolo, Maurizio & De Hoyos, Rafael E. & Medvedev, Denis & van der Mensbrugghe, Dominique, 2008. "Global Growth and Distribution: Are China and India Reshaping the World?," Working Papers RP2008/29, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
    Other versions:
  17. Milanovic, Branko, 2003. "Is inequality in Africa really different ?," Policy Research Working Paper Series 3169, The World Bank. [Downloadable!]
  18. Milanovic, Branko, 2005. "Half a world : regional inequality in five great federations," Policy Research Working Paper Series 3699, The World Bank. [Downloadable!]
    Other versions:
  19. Rodolfo Helg, 2000. "From Seattle to nowhere. Some considerations on the anti-globalisation games," LIUC Papers in Economics 70, Cattaneo University (LIUC). [Downloadable!]
  20. Heshmati, Almas, 2004. "The World Distribution of Income and Income Inequality," IZA Discussion Papers 1267, Institute for the Study of Labor (IZA). [Downloadable!]
  21. Basu, Kaushik, 2005. "Globalization, Poverty and Inequality: What Is the Relationship? What Can Be Done?," Working Papers RP2005/32, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
    Other versions:
  22. Dollar, David, 2004. "Globalization, poverty, and inequality since 1980," Policy Research Working Paper Series 3333, The World Bank. [Downloadable!]
    Other versions:
  23. Ferreira, Francisco H.G. & Ravallion, Martin, 2008. "Global poverty and inequality : a review of the evidence," Policy Research Working Paper Series 4623, The World Bank. [Downloadable!]
  24. Andrea Brandolini, 2007. "Measurement of income distribution in supranational entities: the case of the European Union," Temi di discussione (Economic working papers) 623, Bank of Italy, Economic Research Department. [Downloadable!]
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