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Inequality in the distribution of personal income in the world: How it is changing and why

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  • T. Paul Schultz

    (Economic Growth Center, Yale University, P.O. Box 208269, New Haven, CT 06520-8269, USA)

Abstract

The variance in the logarithms of per capita GDP in purchasing-power-parity prices increased in the world from 1960 to 1968 and decreased since the mid 1970s. In the later period the convergence in intercountry incomes more than offset any increase in within country inequality. Approximately two-thirds of this measure of world inequality is intercountry, three-tenths interhousehold within country inequality, and one-twentieth between gender differences in education. If China is excluded from the world sample, the decline in world inequality after 1975 is not evident. Measuring confidently trends in household and gender inequality will require much improved data.

Suggested Citation

  • T. Paul Schultz, 1998. "Inequality in the distribution of personal income in the world: How it is changing and why," Journal of Population Economics, Springer;European Society for Population Economics, vol. 11(3), pages 307-344.
  • Handle: RePEc:spr:jopoec:v:11:y:1998:i:3:p:307-344
    Note: Received: 22 July 1997 / Accepted: 5 February 1998
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    Keywords

    World inequality · household inequality · gender inequality;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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