The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Inequality (Global)

  • Steve Dowrick
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2540

Abstract

The seemingly inexorable rise in global inequality from the early 19th century may have reached a plateau at the end of the 20th century, although there are disputes about the methodology underlying that conclusion. Increasing global inequality in the 20th century was driven largely by increasing income gaps between nations. Inequality within countries fell sharply at the beginning of the 20th century, rising slightly towards the end. The strong economic growth of the Chinese economy is tending to reduce global inequality as China moves up towards the middle of the income ladder.

Keywords

Balassa–Samuelson effect Catch-up Geary–Khamis purchasing power parity Gini index Inequality (global) Inequality (measurement) Inter-country inequality Intracountry inequality Kuznets, S. Mean logarithmic deviation National accounting Purchasing power parity Standard deviation of logarithmic income Theil index Uneven development 

JEL Classifications

O1 E3 
This is a preview of subscription content, log in to check access.

Bibliography

  1. Bourguignon, F., and C. Morrisson. 2002. Inequality among world citizens: 1820–1992. American Economic Review 92: 727–744.CrossRefGoogle Scholar
  2. Deininger, K., and L. Squire. 1996. A new data set measuring income inequality. World Bank Economic Review 10: 565–591.CrossRefGoogle Scholar
  3. Dowling, J.M., and D. Soo. 1983. Income distribution and economic growth in developing Asian countries. Staff Paper No. 15. Manila: Asian Development Bank.Google Scholar
  4. Dowrick, S., and M. Akmal. 2005. Contradictory trends in global income inequality: A tale of two biases. Review of Income and Wealth 51: 201–229.CrossRefGoogle Scholar
  5. Firebaugh, G. 1999. Empirics of world income inequality. American Journal of Sociology 104: 1597–1630.CrossRefGoogle Scholar
  6. Galbraith, J.K., and H. Kum. 2003. Estimating the inequality of household incomes: Filling gaps and fixing problems in Deininger and Squire. Working paper, Inequality Project, University of Texas.Google Scholar
  7. Heston, A., R. Summers, and B. Aten. 2002. Penn World Table Version 6.1. Center for International Comparisons, University of Pennsylvania.Google Scholar
  8. International Comparison Program. 2007. 1996 price survey data: http://pwt.econ. upenn.edu/Downloads/benchmark/benchmark.html
  9. Khan, A.R., and C. Riskin. 1998. Income and inequality in China: Composition, distribution and growth of household income. China Quarterly 154: 221–253.CrossRefGoogle Scholar
  10. Korzeniewicz, R.P., and T.P. Moran. 1997. World economic trends in the distribution of income, 1965–92. American Journal of Sociology 102: 1000–1039.CrossRefGoogle Scholar
  11. Kuznets, S. 1955. Economic growth and income inequality. American Economic Review 45: 1–28.Google Scholar
  12. Maddison, A. 2003. The world economy: Historical statistics. Paris: OECD.CrossRefGoogle Scholar
  13. Melchior, A., K. Telle, and H. Wiig. 2000. Globalization and inequality: World income distribution and living standards, 1960–1998. Oslo: Norwegian Institute of Foreign Affairs.Google Scholar
  14. Milanovic, B. 2002. True world income distribution, 1988 and 1993: First calculations based on household surveys alone. Economic Journal 112: 51–92.CrossRefGoogle Scholar
  15. Milanovic, B. 2005. Worlds apart: Measuring international and global inequality. Princeton and Oxford: Princeton University Press.Google Scholar
  16. Pritchett, L. 1997. Divergence, big time. Journal of Economic Perspectives 11(3): 3–17.CrossRefGoogle Scholar
  17. Sala-i-Martin, X. 2006. The world distribution of income: Falling poverty and … convergence, period. Quarterly Journal of Economics 121: 351–397.CrossRefGoogle Scholar
  18. Schultz, T.P. 1998. Inequality in the distribution of personal income in the world: How it is changing and why. Journal of Population Economics 11: 307–344.CrossRefGoogle Scholar
  19. Summers, R., and A. Heston. 1991. The Penn World Table (Mark 5): An expanded set of international comparisons, 1950–1988. Quarterly Journal of Economics 106: 327–368.CrossRefGoogle Scholar
  20. Sutcliffe, B. 2004. World inequality and globalization. Oxford Review of Economic Policy 20: 15–37.CrossRefGoogle Scholar
  21. UNDP (United Nations Development Programme). 2006. Human Development Report 2006. New York: Oxford University Press.Google Scholar
  22. UNU–WIDER. 2005. World income inequality database 2.0a. Online. Available at http://www.wider.unu.edu/wiid/wiid.htm, Accessed 8 March 2007.
  23. World Bank. 2006a. World development report. New York: Oxford University Press.Google Scholar
  24. World Bank. 2006b. World development indicators 2006. Online. Available at http://go.worldbank.org/3SGLDH5V10, Accessed 12 April 2007.

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Steve Dowrick
    • 1
  1. 1.