The inequality of labour income in the world has fallen in the past two decades. This was the result of a study by two Swedish Economists, which is regarded in the professional world as an important research result. In the seventies until the nineties, income inequality was significantly higher. You fell markedly from the turn of the Millennium, Daniel Waldenstrom (Paris School of Economics) and Olle Hammar (University of Upsala) is calculated with a new data set.

Philip Plickert

editor in the business, responsible for “The economist”.

F. A. Z.

According to your result of the so-called Gini coefficient, which measures inequality, fell from a high of 65 points in 2000 to only 50 points in 2018. 100 points would show an absolute, extreme inequality, and a score of 0 meant absolute equality of income. “The series of data show a decrease in global income inequality, ( … ) over the investigated period of time,” write the two Economists in the beginning of January, published research paper.

inequality between countries decreases

the main reason for this is that in emerging countries, particularly China and India, the once very low income to have caught up. The share of the highest-earning tenth of the world’s population has declined by about one-third of the total income. In contrast, the bottom half of the world’s population doubled its share, approximately, from 9 to 18 percent. According to the calculations is increased within many countries, the inequality in China. But between countries, the inequality decreases.

This a result of the Munich-based distribution to researchers Andreas Peichl (Ifo Institute), praises the paper of Sweden as a valuable contribution confirmed. “The bottom line is that the differences between the countries are reduced, especially because these two great countries, and others are catching up. As a result, the gap has closed from a global perspective,“ said Peichl. This process will continue, as the emerging countries, higher growth rates than the old industrial countries.

High inequality in Latin America and Africa

A Gini Index of 50 points is still a high value. In Germany the coefficient of the income distribution after calculation of the industrialized countries organization OECD a little under 30 points below the OECD average of 32 points. The Index for the United States is 39.

Still much higher inequality in most Latin American countries such as Brazil and many African countries, some of which are well over 60 points in South Africa. In China, inequality increased (Gini at 42, according to the world Bank), while the country took a rapid upturn.