IDEAS home Printed from https://ideas.repec.org/p/cte/whrepe/wp07-05.html
   My bibliography  Save this paper

International inequality and polarization in living standards, 1870-2000 : evidence from the Western World

Author

Listed:
  • Prados de la Escosura, Leandro

Abstract

A long-run view of inter-country inequality in living standards is provided for a large sample of countries in Western Europe, the European Offshoots, Japan – OECD, for short- and Latin America. A long term rise in real per capita income inequality is found. The deepening gap between OECD and Latin America was the major factor beneath this increase. Inequality in non-economic indicators of well-being (longevity, education, and human development) fell in the long run but a gap between OECD and Latin America remained by 2000. Polarization took place in the Western World during the second half of the twentieth century.

Suggested Citation

  • Prados de la Escosura, Leandro, 2007. "International inequality and polarization in living standards, 1870-2000 : evidence from the Western World," IFCS - Working Papers in Economic History.WH wp07-05, Universidad Carlos III de Madrid. Instituto Figuerola.
  • Handle: RePEc:cte:whrepe:wp07-05
    as

    Download full text from publisher

    File URL: https://e-archivo.uc3m.es/bitstream/handle/10016/631/wp07-05.pdf?sequence=1
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brian Goesling & Glenn Firebaugh, 2004. "The Trend in International Health Inequality," Population and Development Review, The Population Council, Inc., vol. 30(1), pages 131-146, March.
    2. 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.
    3. Kakwani, N., 1993. "Performance in living standards : An international comparison," Journal of Development Economics, Elsevier, vol. 41(2), pages 307-336, August.
    4. Satya R. Chakravarty, 2003. "A Generalized Human Development Index," Review of Development Economics, Wiley Blackwell, vol. 7(1), pages 99-114, February.
    5. Tomson Ogwang & Abdella Abdou, 2003. "The Choice of Principal Variables for Computing some Measures of Human Well-being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 64(1), pages 139-152, October.
    6. Esteban, Joan & Ray, Debraj, 1994. "On the Measurement of Polarization," Econometrica, Econometric Society, vol. 62(4), pages 819-851, July.
    7. Branko Milanovic, 2006. "Global Income Inequality," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 7(1), pages 131-157, January.
    8. Seshanna, Shubhasree & Decornez, Stephane, 2003. "Income polarization and inequality across countries: an empirical study," Journal of Policy Modeling, Elsevier, vol. 25(4), pages 335-358, June.
    9. Taylor, Alan M & Williamson, Jeffrey G, 1994. "Capital Flows to the New World as an Intergenerational Transfer," Journal of Political Economy, University of Chicago Press, vol. 102(2), pages 348-371, April.
    10. Williamson, Jeffrey G, 1997. "Globalization and Inequality, Past and Present," The World Bank Research Observer, World Bank, vol. 12(2), pages 117-135, August.
    11. Durlauf, Steven N & Johnson, Paul A, 1995. "Multiple Regimes and Cross-Country Growth Behaviour," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(4), pages 365-384, Oct.-Dec..
    12. Branko Milanovic, 2005. "Global Income Inequality: What It Is And Why It Matters?," HEW 0512001, University Library of Munich, Germany.
    13. Wolfson, Michael C, 1994. "When Inequalities Diverge," American Economic Review, American Economic Association, vol. 84(2), pages 353-358, May.
    14. Hobijn, Bart & Franses, Philip Hans, 2001. "Are living standards converging?," Structural Change and Economic Dynamics, Elsevier, vol. 12(2), pages 171-200, July.
    15. Hopkins, Michael, 1991. "Human development revisited: A new UNDP report," World Development, Elsevier, vol. 19(10), pages 1469-1473, October.
    16. Peter H. Lindert & Jeffrey G. Williamson, 2003. "Does Globalization Make the World More Unequal?," NBER Chapters, in: Globalization in Historical Perspective, pages 227-276, National Bureau of Economic Research, Inc.
    17. Aturupane, Harsha & Glewwe, Paul & Isenman, Paul, 1994. "Poverty, Human Development, and Growth: An Emerging Consensus?," American Economic Review, American Economic Association, vol. 84(2), pages 244-249, May.
    18. Salazar-Carrillo, Jorge, 1983. "Real Product and Price Comparisons for Latin America and Other World Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 31(4), pages 757-773, July.
    19. Nuxoll, Daniel A, 1994. "Differences in Relative Prices and International Differences in Growth Rates," American Economic Review, American Economic Association, vol. 84(5), pages 1423-1436, December.
    20. Stanley L. Engerman, 1997. "The Standard of Living Debate in International Perspective: Measures and Indicators," NBER Chapters, in: Health and Welfare during Industrialization, pages 17-46, National Bureau of Economic Research, Inc.
    21. Morrisson, Christian, 2000. "Historical perspectives on income distribution: The case of Europe," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 4, pages 217-260, Elsevier.
    22. François Bourguignon & Christian Morrisson, 2002. "Inequality Among World Citizens: 1820-1992," American Economic Review, American Economic Association, vol. 92(4), pages 727-744, September.
    23. Lindert, Peter H., 2000. "Three centuries of inequality in Britain and America," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 3, pages 167-216, Elsevier.
    24. Fabio Canova, 2004. "Testing for Convergence Clubs in Income Per Capita: A Predictive Density Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(1), pages 49-77, February.
    25. Gottschalk, Peter & Smeeding, Timothy M., 2000. "Empirical evidence on income inequality in industrialized countries," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 5, pages 261-307, Elsevier.
    26. Dejian Lai, 2000. "Temporal Analysis of Human Development Indicators: Principal Component Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 51(3), pages 331-366, September.
    27. Dasgupta, Partha & Weale, Martin, 1992. "On measuring the quality of life," World Development, Elsevier, vol. 20(1), pages 119-131, January.
    28. Dowrick, Steve & Dunlop, Yvonne & Quiggin, John, 2003. "Social indicators and comparisons of living standards," Journal of Development Economics, Elsevier, vol. 70(2), pages 501-529, April.
    29. Ram, Rati, 1982. "Composite indices of physical quality of life, basic needs fulfilment, and income : A principal component representation," Journal of Development Economics, Elsevier, vol. 11(2), pages 227-247, October.
    30. Hicks, Norman & Streeten, Paul, 1979. "Indicators of development: The search for a basic needs yardstick," World Development, Elsevier, vol. 7(6), pages 567-580, June.
    31. Leandro Prados de la Escosura, 2007. "When Did Latin America Fall Behind?," NBER Chapters, in: The Decline of Latin American Economies: Growth, Institutions, and Crises, pages 15-58, National Bureau of Economic Research, Inc.
    32. Alain Desdoigts, 1999. "Patterns of economic development and the formation of clubs," Post-Print hal-02878020, HAL.
    33. Ram Rati, 1992. "International inequalities in human development and real income," Economics Letters, Elsevier, vol. 38(3), pages 351-354, March.
    34. Michael D. Bordo & Alan M. Taylor & Jeffrey G. Williamson, 2003. "Globalization in Historical Perspective," NBER Books, National Bureau of Economic Research, Inc, number bord03-1, March.
    35. Li, Hongyi & Squire, Lyn & Zou, Heng-fu, 1998. "Explaining International and Intertemporal Variations in Income Inequality," Economic Journal, Royal Economic Society, vol. 108(446), pages 26-43, January.
    36. Larson, David A. & Wilford, Walton T., 1979. "The physical quality of life index: A useful social indicator?," World Development, Elsevier, vol. 7(6), pages 581-584, June.
    37. Lant Pritchett & Lawrence H. Summers, 1996. "Wealthier is Healthier," Journal of Human Resources, University of Wisconsin Press, vol. 31(4), pages 841-868.
    38. David Mayer-Foulkes, 2001. "Convergence Clubs in Cross-Country Life Expectancy Dynamics," WIDER Working Paper Series DP2001-134, World Institute for Development Economic Research (UNU-WIDER).
    39. Desdoigts, Alain, 1999. "Patterns of Economic Development and the Formation of Clubs," Journal of Economic Growth, Springer, vol. 4(3), pages 305-330, September.
    40. James C. Riley, 2005. "The Timing and Pace of Health Transitions around the World," Population and Development Review, The Population Council, Inc., vol. 31(4), pages 741-764, December.
    41. Pablo Astorga & Ame R. Berges & Valpy Fitzgerald, 2005. "The standard of living in Latin America during the twentieth century," Economic History Review, Economic History Society, vol. 58(4), pages 765-796, November.
    42. Xavier Sala-i-Martin, 2006. "The World Distribution of Income: Falling Poverty and … Convergence, Period," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(2), pages 351-397.
    43. Rosemary Thorp, 1998. "Progress, Poverty and Exclusion: An Economic History of Latin America in the 20th Century," IDB Publications (Books), Inter-American Development Bank, number 79303, February.
    44. Branko Milanovic, 2003. "The Ricardian Vice: Why Sala-i-Martin’s calculations of world income inequality are wrong," HEW 0305003, University Library of Munich, Germany.
    45. Manuel Wallerstein, 1983. "European Economic Development: A Comment on O'Brien," Economic History Review, Economic History Society, vol. 36(4), pages 580-583, November.
    46. Jorge Salazar‐Carrillo & Irma Tirado Alonso, 1988. "Real Product And Price Comparisons Between Latin America And The Rest Of The World," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 34(1), pages 27-43, March.
    47. Beckerman, Wilfred & Bacon, Robert, 1970. "International Comparisons of Income Levels: an Additional Measure: Reply," Economic Journal, Royal Economic Society, vol. 80(318), pages 418-420, June.
    48. Srinivasan, T N, 1994. "Human Development: A New Paradigm or Reinvention of the Wheel?," American Economic Review, American Economic Association, vol. 84(2), pages 238-243, May.
    49. Xavier Sala-i-Martin, 2001. "The disturbing 'rise' of global income inequality," Economics Working Papers 616, Department of Economics and Business, Universitat Pompeu Fabra, revised Apr 2002.
    50. Easterlin, Richard A., 1999. "How beneficent is the market? A look at the modern history of mortality," European Review of Economic History, Cambridge University Press, vol. 3(3), pages 257-294, December.
    51. Desai, Meghnad, 1991. "Human development : Concepts and measurement," European Economic Review, Elsevier, vol. 35(2-3), pages 350-357, April.
    52. Paul Bairoch, 1981. "The Main Trends in National Economic Disparities since the Industrial Revolution," Palgrave Macmillan Books, in: Paul Bairoch & Maurice Lévy-Leboyer (ed.), Disparities in Economic Development since the Industrial Revolution, chapter 1, pages 3-17, Palgrave Macmillan.
    53. Lant Pritchett, 1997. "Divergence, Big Time," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 3-17, Summer.
    54. Sagar, Ambuj D. & Najam, Adil, 1998. "The human development index: a critical review," Ecological Economics, Elsevier, vol. 25(3), pages 249-264, June.
    55. Richard H. Steckel & Roderick Floud, 1997. "Health and Welfare during Industrialization," NBER Books, National Bureau of Economic Research, Inc, number stec97-1, March.
    56. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    57. Easterly, William, 2001. "The Lost Decades: Developing Countries' Stagnation in Spite of Policy Reform 1980-1998," Journal of Economic Growth, Springer, vol. 6(2), pages 135-157, June.
    58. Easterly, William, 1999. "Life during Growth," Journal of Economic Growth, Springer, vol. 4(3), pages 239-276, September.
    59. Stanley N. Braithwaite, 1968. "Real Income Levels In Latin America," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 14(2), pages 113-182, June.
    60. Alan Heston, 1973. "A Comparison Of Some Short‐Cut Methods Of Estimating Real Product Per Capita," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 19(1), pages 79-104, March.
    61. Krishna Mazumdar, 1999. "Measuring the Well-Beings of the Developing Countries: Achievement and Improvement Indices," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 47(1), pages 1-60, May.
    62. Steve Dowrick & Muhammad Akmal, 2005. "Contradictory Trends In Global Income Inequality: A Tale Of Two Biases," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(2), pages 201-229, June.
    63. Theil, Henri & Theil, Henri, 1979. "World income inequality and its components," Economics Letters, Elsevier, vol. 2(1), pages 99-102.
    64. Crafts, N. F. R., 1997. "The Human Development Index and changes in standards of living: Some historical comparisons," European Review of Economic History, Cambridge University Press, vol. 1(3), pages 299-322, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wolff, Hendrik & Chong, Howard & Auffhammer, Maximilian, 2008. "Consequences of Data Error in Aggregate Indicators: Evidence from the Human Development Index," CUDARE Working Papers 6502, University of California, Berkeley, Department of Agricultural and Resource Economics.
    2. Wolff, Hendrik & Chong, Howard & Auffhammer, Maximilian, 2009. "Human Development Index: Are Developing Countries Misclassified? (former title: "Consequences of Data Error in Aggregate Indicators: Evidence from the Human Development Index)," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49763, Agricultural and Applied Economics Association.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Leandro Prados de la Escosura, 2010. "Improving Human Development: A Long‐Run View," Journal of Economic Surveys, Wiley Blackwell, vol. 24(5), pages 841-894, December.
    2. Prados de la Escosura, Leandro, 2004. "When did Latin America fall behind? : evidence from long-run international inequality," IFCS - Working Papers in Economic History.WH wh046604, Universidad Carlos III de Madrid. Instituto Figuerola.
    3. Leandro Prados de la Escosura, 2015. "World Human Development: 1870–2007," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(2), pages 220-247, June.
    4. Leandro Prados de la Escosura, 2021. "Augmented human development in the age of globalization," Economic History Review, Economic History Society, vol. 74(4), pages 946-975, November.
    5. Nicola Amendola & Giacomo Gabbuti & Giovanni Vecchi, 2023. "On some problems of using the Human Development Index in economic history," European Review of Economic History, European Historical Economics Society, vol. 27(4), pages 477-505.
    6. Prados de la Escosura, Leandro, 2013. "Human development in Africa: A long-run perspective," Explorations in Economic History, Elsevier, vol. 50(2), pages 179-204.
    7. David Warner & Prasada Rao & William E. Griffiths & Duangkamon Chotikapanich, 2011. "Global Inequality: Levels and Trends, 1993-2005," Discussion Papers Series 436, School of Economics, University of Queensland, Australia.
    8. Mark McGillivray & Farhad Noorbakhsh, 2004. "Composite Indices of Human Well-being: Past, Present, and Future," WIDER Working Paper Series RP2004-63, World Institute for Development Economic Research (UNU-WIDER).
    9. Paolo Liberati, 2015. "The World Distribution of Income And Its Inequality, 1970–2009," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(2), pages 248-273, June.
    10. Leandro Prados de la Escosura, 2023. "Inequality Beyond GDP: A Long View," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 69(3), pages 533-554, September.
    11. Elizabeth Stanton, 2007. "The Human Development Index: A History," Working Papers wp127, Political Economy Research Institute, University of Massachusetts at Amherst.
    12. Nicola Amendola & Giacomo Gabbuti & Giovanni Vecchi, 2018. "On the use of composite indices in economic history. Lessons from Italy, 1861-2017," HHB Working Papers Series 11, The Historical Household Budgets Project.
    13. Jeni Klugman & Francisco Rodríguez & Hyung-Jin Choi, 2011. "The HDI 2010: new controversies, old critiques," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(2), pages 249-288, June.
    14. Miles Cahill & Nicolás Sánchez, 2001. "Using principal components to produce an economic and social development index: An application to Latin America and the U.S," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 29(3), pages 311-329, September.
    15. David Warner & D. S. Prasada Rao & William E. Griffiths & Duangkamon Chotikapanich, 2014. "Global Inequality; Levels and Trends, 1993–2005: How Sensitive are These to the Choice of PPPs and Real Income Measures?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S2), pages 281-304, November.
    16. Branko Milanovic, 2012. "Global inequality recalculated and updated: the effect of new PPP estimates on global inequality and 2005 estimates," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(1), pages 1-18, March.
    17. Hajo Holzmann & Sebastian Vollmer & Julian Weisbrod, 2007. "Income Distribution Dynamics and Pro-Poor Growth in the World from 1970 to 2003," Ibero America Institute for Econ. Research (IAI) Discussion Papers 161, Ibero-America Institute for Economic Research.
    18. Kevin H. O'Rourke, 2002. "Globalization and Inequality: Historical Trends," Aussenwirtschaft, University of St. Gallen, School of Economics and Political Science, Swiss Institute for International Economics and Applied Economics Research, vol. 57(01), pages 65-104, March.
    19. Bart Capéau & Andre Decoster, 2004. "The Rise or Fall of World Inequality: A Spurious Controversy?," WIDER Working Paper Series DP2004-02, World Institute for Development Economic Research (UNU-WIDER).
    20. Andrea Brandolini, 2006. "Measurement of Income Distribution in Supranational Entities: The Case of the European Union," LIS Working papers 452, LIS Cross-National Data Center in Luxembourg.

    More about this item

    Keywords

    Inequality;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cte:whrepe:wp07-05. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ana Poveda (email available below). General contact details of provider: http://portal.uc3m.es/portal/page/portal/instituto_figuerola .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.