Income Inequality Definition World Bank

In this note we review the world bank s povcalnet the luxembourg income study and wealth study databases lis lws the standardized world income inequality database swiid the world income.

Income inequality definition world bank. The less equal the distribution the higher income inequality is. Most developing countries except latin america use consumption expenditure underestimate level of inequality in developing countries and maybe also trend 2. Income inequality is how unevenly income is distributed throughout a population. Incomplete coverage of the top tail in surveys.

The database was constructed for the production of the following paper. The world bank assigns the world s economies to four income groups low lower middle upper middle and high income countries. It means that we will work to increase the incomes and welfare of the less well off wherever they are be it the poorest of nations or in thriving middle income countries. Exactly how much growth actually reduces poverty depends on at least two factors.

Inequality and shared prosperity the world bank is working to promote shared prosperity in the 140 plus client countries we serve. Inequality and shared prosperity home. Difficulties in measuring inequality around the world 1. Income inequality is often accompanied by wealth.

It suggests that the period might have witnessed the first decline in global inequality between world citizens since the industrial revolution. This ratio is readily interpretable by expressing the income of the rich as multiples of that of the poor. This article presents a new data set on inequality in the distribution of income. 2019 in this case.

Income increased fivefold between 1964 and 1990 yet the gini coefficient barely moved declining from 32 2 to 30 1 since income inequality tends to remain stable over time economic growth can be expected to reduce poverty at least to some extent. It focuses in particular on the winners and losers of the most recent episode of globalization from 1988 to 2008. Deininger klaus and lyn squire a new data set measuring income inequality the world bank economic review 10 3.