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Global inequality recalculated: The effect of new 2005 PPP estimates on global inequality

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  • Milanovic, Branko

Abstract

The results of new direct price level comparisons across 146 countries in 2005 have led to large revisions of PPP (purchasing power parity) exchanges rates, particularly for China and India. The recalculation of international and global inequalities, using the new PPPs, shows that inequalities are substantially higher than previously thought. Inequality between global citizens is estimated at 70 Gini points rather than 65 as before. The richest decile receives 57 percent of global income rather than 50 percent.

Suggested Citation

  • Milanovic, Branko, 2009. "Global inequality recalculated: The effect of new 2005 PPP estimates on global inequality," MPRA Paper 16538, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:16538
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    References listed on IDEAS

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    1. Sanjay Reddy & Camelia Minoiu, 2009. "Real Income Stagnation of Countries 1960-2001," Journal of Development Studies, Taylor & Francis Journals, vol. 45(1), pages 1-23.
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    More about this item

    Keywords

    Global inequality; Purchasing power parity;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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