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Evolution of the Global Income Inequality, 1970-2015

Evolution of the Global Income Inequality, 1970-2015. Yuri Dikhanov World Bank. Présenté par: Mr. Michel WARD Expert des Nations Unies. Global inequality consists of within-nation and international components

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Evolution of the Global Income Inequality, 1970-2015

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  1. Evolution of the Global Income Inequality, 1970-2015 Yuri Dikhanov World Bank Présenté par: Mr. Michel WARD Expert des Nations Unies

  2. Global inequality consists of within-nation and international components • Global distribution is based on 45 countries representing 5/6 of population and income • Income from household surveys is augmented to Personal Consumption Expenditures • National distributions converted using PPPs • Quasi-exact approximation of distribution f-n (with cubic polynomials)

  3. Assumptions for 2015 • Growth rates from the 90s are maintained for 2000-2015 (except for Africa and Eastern Europe) • National distributions are frozen at the 2000 level

  4. Regional composition of global income distribution, by percentile, 1970

  5. Regional composition of global income distribution, by percentile, 2000

  6. Regional composition of global income distribution, by percentile, 2015

  7. Regional income distributions:example of Africa, 2000

  8. Income transfer Assumptions: • Poverty gap 39% (20.6% of world population below PPP $700) • 5% of the wealthiest transfer 2.8% of their total income or 8.1% of marginal income (1.04% of world income - $350 bln. in PPP terms or $150 bln. in exchange rate terms) to cover the poverty gap; • Transfer is made to the people below PPP $1,400, with marginal rate 19.6%.

  9. Ends of the global distribution, before and after the hypothetical transfer

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