TY - JOUR
T1 - Is the Era of Declining Global Income Inequality Over?
AU - Kanbur, Ravi
AU - Ortiz-Juarez, Eduardo
AU - Sumner, Andy
N1 - Funding Information:
The authors would like to thank for research assistance, L. Guillermo Woo-Mora and for comments on earlier versions, F. Bourguignon, M. Ravallion and J Sandefur.
Publisher Copyright:
© 2024 The Author(s)
PY - 2024/9
Y1 - 2024/9
N2 - This paper examines the trajectory of global income inequality since 1981. Commonly used (relative) definitions indicate a decline in global inequality since the late 1980s. Looking ahead, it has been intuited that the influence of China's economic development—and that of other rapidly growing, populous nations—on the between-country component will, at some juncture, diminish and start to add to global inequality should economic growth persist. Our paper formalizes the turning point of global inequality through a simple model. For illustrative purposes, we empirically present the implications for the timing of the turning point in the context of a weaker post-pandemic growth recovery versus a stronger, albeit improbable, post-pandemic growth recovery. We conclude by arguing that the era of declining global income inequality is likely over, considering the forces influencing both the between-country and within-country components.
AB - This paper examines the trajectory of global income inequality since 1981. Commonly used (relative) definitions indicate a decline in global inequality since the late 1980s. Looking ahead, it has been intuited that the influence of China's economic development—and that of other rapidly growing, populous nations—on the between-country component will, at some juncture, diminish and start to add to global inequality should economic growth persist. Our paper formalizes the turning point of global inequality through a simple model. For illustrative purposes, we empirically present the implications for the timing of the turning point in the context of a weaker post-pandemic growth recovery versus a stronger, albeit improbable, post-pandemic growth recovery. We conclude by arguing that the era of declining global income inequality is likely over, considering the forces influencing both the between-country and within-country components.
KW - Between-country income inequality
KW - Global income inequality
UR - http://www.scopus.com/inward/record.url?scp=85182907958&partnerID=8YFLogxK
U2 - 10.1016/j.strueco.2024.01.002
DO - 10.1016/j.strueco.2024.01.002
M3 - Article
AN - SCOPUS:85182907958
SN - 0954-349X
VL - 70
SP - 45
EP - 55
JO - Structural Change and Economic Dynamics
JF - Structural Change and Economic Dynamics
ER -
