We are used to thinking about inequality within countries--about rich Americans versus poor Americans, for instance. But what about inequality between all citizens of the world? Worlds Apart addresses just how to measure global inequality among in
We are used to thinking about inequality within countries--about rich Americans versus poor Americans, for instance. But what about inequality between all citizens of the world? Worlds Apart addresses just how to measure global inequality among individuals, and shows that inequality is shaped by complex forces often working in different directions. Branko Milanovic, a top World Bank economist, analyzes income distribution worldwide using, for the first time, household survey data from more than 100 countries. He evenhandedly explains the main approaches to the problem, offers a more accurate way of measuring inequality among individuals, and discusses the relevant policies of first-world countries and nongovernmental organizations.
Inequality has increased between nations over the last half century (richer countries have generally grown faster than poorer countries). And yet the two most populous nations, China and India, have also grown fast. But over the past two decades inequality within countries has increased. As complex as reconciling these three data trends may be, it is clear: the inequality between the world's individuals is staggering. At the turn of the twenty-first century, the richest 5 percent of people receive one-third of total global income, as much as the poorest 80 percent. While a few poor countries are catching up with the rich world, the differences between the richest and poorest individuals around the globe are huge and likely growing....Continua
By the pooled data of household surveys from different nations (1988, 1993, 1998), the book of Milanovic argued that global income inequality is slightly increasing during the early 1990s. After the peak in 1993, the global Gini is declining. The author also tried to calculate the weighted Gini and Theil from 1820 to 2000. The global income inequality went to the apex during 1970-90 and then declined. However, the catching-up of the periphery become more difficult in 1978-2000.
To sum up, most of the literatures found that the between-nation Gini (weighted by population) is declining with the risk of ecological fallacy. But the time series of global household data are too short to comform the trend of the weighted-international-Gini.
Notice that the author referred the datasets from the four sources: Official, PWT 6.1, Maddison, and World Bank....Continua