The Elephant Curve of Global Inequality and Growth
AbstractWe present new evidence on global inequality and growth since 1980 using the World and Wealth Income Database. We plot the curve of cumulated growth from 1980 to 2016 by percentile of the global distribution of income per adult. This curve has an elephant shape due to high growth rates at the median (fast growth in China and India), modest growth rates above the median, and explosive growth rates at the top. We project the evolution of global inequality between now and 2050 combining projected macro growth rates and within country inequality evolution based on past trends.
CitationAlvaredo, Facundo, Lucas Chancel, Thomas Piketty, Emmanuel Saez, and Gabriel Zucman. 2018. "The Elephant Curve of Global Inequality and Growth." AEA Papers and Proceedings, 108: 103-08. DOI: 10.1257/pandp.20181073
- D31 Personal Income, Wealth, and Their Distributions
- D63 Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- O11 Macroeconomic Analyses of Economic Development
- O47 Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence