2002
DOI: 10.1111/1475-4991.00046
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Decomposing World Income Distribution: Does The World Have A Middle Class?

Abstract: Using the national income͞expenditure distribution data from 111 countries, we decompose total inequality between the individuals in the world, by continents and regions. We use Yitzhaki's Gini decomposition which allows for an exact breakdown of the Gini. We find that Asia is the most heterogeneous continent; between-country inequality is much more important than inequality in incomes within countries. At the other extreme is Latin America where differences between the countries are small, but inequalities wi… Show more

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Cited by 201 publications
(120 citation statements)
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References 15 publications
(12 reference statements)
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“…In particular, the middle class is traditionally defined either as the set of people owning an income within an interval from 75% to 125 % of the median (e.g., Thurow, 1987), or as belonging to the second, third and fourth quintiles of the income distribution (Easterly, 2001), or as living inside common bounds across countries (Milanovic & Yitzhaki, 2002), or possessing a daily revenue varying over an income interval (Banerjee & Duflo, 2008), among others. By contrast, following the recommendation of DER (2004, p. 1760), we consider that social groups have only a demarcating role.…”
Section: Number and Size Of Groupsmentioning
confidence: 99%
“…In particular, the middle class is traditionally defined either as the set of people owning an income within an interval from 75% to 125 % of the median (e.g., Thurow, 1987), or as belonging to the second, third and fourth quintiles of the income distribution (Easterly, 2001), or as living inside common bounds across countries (Milanovic & Yitzhaki, 2002), or possessing a daily revenue varying over an income interval (Banerjee & Duflo, 2008), among others. By contrast, following the recommendation of DER (2004, p. 1760), we consider that social groups have only a demarcating role.…”
Section: Number and Size Of Groupsmentioning
confidence: 99%
“…Alternatively, a global category of middle class can be defined as households with an income level between that of an average Brazilian household and that from Italy (Milanovic and Yitzhaki, 2002). This global group of households can have a good deal of commonality.…”
Section: The Global Middle Classmentioning
confidence: 99%
“…This has mostly involved using additive and Generalized entropy indices -see, for instance, Bourguignon (1979), Cowell (1980), Foster and Shneyerov (1999), Mookherjee and Shorrocks (1982), Shorrocks (1980), Shorrocks (1984), Schwarze (1996) and Zandvakili (1999). Decompositions of the Gini and rank-dependent inequality indices are investigated in Dagum (1997), Deutsch and Silber (1999a), Deutsch and Silber (1999b), Milanovic and Yitzhaki (2002), Sastry and Kelkar (1994), Tsui (1998) and Yitzhaki and Lerman (1991). A money-metric cost-of-inequality approach to decomposing inequality across subpopulations is derived in Blackorby, Donaldson, and Auersperg (1981), Duclos and Lambert (2000) and Ebert (1999).…”
Section: 8mentioning
confidence: 99%