The Worldwide Income Distribution: Some Speculative Calculations*

Abstract

This paper uses a variety of assumptions to produce calculations of worldwide income distributions from recent international data compilations. The variable quality of the source materials in these compilations along with the arbitrariness in the assumptions required are emphasized. A number of working hypotheses for the worldwide income distribution are offered until data and methods improve. It is suggested the top 1 percent of world population may receive 10–15 percent of world income, the top 10 percent from 45–65 percent, and the bottom 20 percent from 1–4 percent. These figures seem more unequal than those for domestic distributions even for more inegalitarian countries.

Probleme und Perspektiven der weltwirtschaftlichen Entwicklung

“…Furthermore, until very recently, what studies there have been have viewed countries as a single unit and have neglected the contribution of within-country inequality to total world inequality. The major exceptions to this are the recent study by Berry et al [1983] and the study by Whalley [1979]. The Berry et al study undertook a careful standardization of in co me distributions within countries for 1970, used purchasing power parity exchange rates to convert gross national product (GNP) per capita from national to international currencies, included socialist countries, and covered the period from 1950 to 1977.…”

Measurement of income distribution in supranational entities: the case of the European Union

“…To my knowledge, Whalley (1979) was the first to estimate world income inequality. A non-exhaustive list of subsequent contributions include Berry, Bourguignon, and Morrisson (1983a, b), Grosh andNafziger (1986), Chotikapanich, Rao, andValenzuela (1997), Schultz (1998), Bhalla (2002), Morrisson (2002), Milanovic (2002), Dowrick andAkmal (2005) andSala-i-Martin (2006).…”

Evaluation of Asian Income Distribution and Poverty Ratios Using Worldwide Income Distribution

“…Using these improvements in research methodologies, 'Worldwide Income Distribution' was estimated by Whalley (1979), Berry, Bourguignon and Morris (1983), Grosh and Nafziger (1986) and Yoshida (1990). These studies aimed to obtain worldwide population distribution classified by income group using the following steps.…”