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Intercountry Income Inequality: World Levels and Decomposition Between and Within Developmental Clusters and Regions

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  • Amnon Levy
  • Khorshed Chowdhury

Abstract

By applying the Theil index of income inequality and its decomposition between and within groups to income data adjusted for purchasing power parity on 115 countries between 1960 and 1985, we find that the worldwide level of intercountry income inequality declined steadily by 0.584% per annum, indicating a considerable overall convergence process. The decomposition analysis indicates that the dominant constituent of intercountry income inequality was the aggregate inequality among regions, followed by the aggregate inequality within regions. The decomposition also reveals that the contribution of income inequality among the clusters of LDCs, OECD countries and CPEs was very small.

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  • Amnon Levy & Khorshed Chowdhury, 1994. "Intercountry Income Inequality: World Levels and Decomposition Between and Within Developmental Clusters and Regions," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 36(3), pages 33-50, September.
    • Handle: RePEc:pal:compes:v:36:y:1994:i:3:p:33-50
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    Cited by:

    1. Sampath, Rajan K. & Anwer, Muhammad Sarfraz, 2002. "Inequality In World Gdp Distribution," 2002 Annual Meeting, July 28-31, 2002, Long Beach, California 36529, Western Agricultural Economics Association.

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