2024/01/19 by Ravi Kanbur, Eduardo Ortiz-Juarez, Eduardo Ortiz-Juárez +1 · 1 citation
Economics, Econometrics and Finance · Environmental Science · Social Sciences · #Economic Theory and Policy #Income, Poverty, and Inequality #Sustainable Development and Environmental Policy
paper · doi:10.1016/j.strueco.2024.01.002
openalex publication_date 2024/01/19 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
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.