The Rise or Fall of World Inequality Big Issue or Apparent Controversy?
In the age of globalization, the question whether inequality in the world rose or fell down, is a hot topic. Leading scholars in the field of economic inequality measurement developed methods to estimate empirically the distribution of welfare (income) amongst world citizens. Despite their similar methodologies, they do not seem to agree about the conclusion. In the present paper we pinpoint down what drives the two extreme positions apart. Sala-i-Martin (2002a,b), who claims that there can be no doubt that world inequality went down between the late seventies and the late nineties, has in fact calculated population weighted inequality between countries. Milanovic (2002a,b,c) does not deny this, but illustrates the empirical importance of divergent tendencies at the sub-national level (especially urban versus rural regions) for assessing true world inequality and comes to the reverse conclusion. Nevertheless, there seems to be unanimity, especially amongst the contributions quoted here, about the inequality measure(s) to be used for assessing world income distributions. We show that at least for international inequality, there is empirical evidence for rank reversals among the class of generalized entropy measures and expect the same to be true of world inequality. However, the normative debate about which inequality measure to use for assessing true world inequality has not yet begun.
Volume (Year): XLVIII (2003)
Issue (Month): 4 ()
|Contact details of provider:|| Postal: |
Web page: http://www.econ.kuleuven.be
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ete:revbec:20030401. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hilde Roos)The email address of this maintainer does not seem to be valid anymore. Please ask Hilde Roos to update the entry or send us the correct address
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.