Changes in the World Distribution of Income between 1950 and 1977

Berry, Albert; Bourguignon, Françoìs; Morrisson, Christian

doi:10.2307/2232796

Cited by 80 publications

(62 citation statements)

References 10 publications

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“…This ratio varies between 85 and 89 percent for the PWT and Afriat measures of income and between 91 and 92 percent for the FX income-based Gini. Intra-country inequality contributes relatively little, no more than 15 percent, to the global Gini coefficient-in line with the findings of Berry et al (1983), Milanovic (2002, Korzeniewicz and Moran (1997) and Li et al (1998). Given that intra-country inequality is only a minor component of world inequality, it is not surprising to find that the global Gini coefficient displays a similar time trend to the inter-country Gini.…”

Section: Global Inequalitysupporting

confidence: 74%

“…In other studies, however, the within-country dimension has been taken into consideration, giving a more accurate picture of inequality across all households in the world-as in Berry et al (1983), Grosh and Nafziger (1986), Chotikapanich et al (1997), Schulz (1998), Milanovic (2002, Sala-i-Martin (2002a, 2002b, and Bourguignon and Morrisson (2002).…”

Section: Intra-country Inequalitymentioning

confidence: 99%

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Contradictory Trends in Global Income Inequality: A Tale of Two Biases

Dowrick

Akmal

2006

Inequality, Poverty and Well-Being

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Did global income inequality rise or fall over the last decades of the twentieth century? The answer depends on how cross-country income comparisons are made. Exchange rate comparisons suggest that inequality rose whilst the purchasing power comparisons of the Penn World Table suggest it fell. We show that both measures of real incomes lead to biased international income comparisons. Exchange rate comparisons ignore the relative price of non-tradables, whilst the fixed price method underlying the Penn World Table is subject to substitution bias. The contradictory trends are due to growing dissimilarity between national price structures increasing the degree of bias in each method. When we correct the income data to eliminate bias we find no compelling evidence of a significant change in world inequality.

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Section: Global Inequalitysupporting

confidence: 74%

Section: Intra-country Inequalitymentioning

confidence: 99%

Contradictory Trends in Global Income Inequality: A Tale of Two Biases

Dowrick

Akmal

2006

Inequality, Poverty and Well-Being

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“…1), intercountry inequality in the 1950s declined slightly, as represented by either the Gini or mean logarithmic deviation of PPP income per capita. For the period 1960 to 1977, Berry et al (1983) also show an irregular increase in intercountry inequality in 1961 and 1968, followed by the start of the decline in inequality that is documented more fully in this paper. Extending this approach back to 1870 might also be informative (Maddison, 1989).…”

supporting

confidence: 64%

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

Schultz

1998

Journal of Population Economics

197

145

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. 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 requires much improved data. Terms of use: Documents inJEL Classification: D31, F02, J16

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“…We shall have more to say about this epochal regime switch below. 4 been driven almost entirely by the rise of between-nation inequality, not by any rise in inequality within nations (Berry et al 1983(Berry et al , 1991Maddison 1995;Pritchett 1997;Prados 2000;Bourguignon and Morrisson 2000;Ward 2000). 2 This evidence is summarized in Figure 1.…”

Section: Global Divergence Is Far Older Than Globalizationmentioning

confidence: 99%