2020

Global Earnings Inequality, 1970–2018

Reprint No. 2020:79

Author(s): Olle Hammar and Daniel WaldenströmYear: 2020 Title: Economic Journal Volume (No.): 130 (632) Pages: 2526–2545
Online article (restrictions may apply)

Global Earnings Inequality, 1970–2018 Olle Hammar and Daniel Waldenström


We estimate trends in global earnings dispersion across occupational groups by constructing a new database that covers 68 developed and developing countries between 1970 and 2018. Our main finding is that global earnings inequality has fallen, primarily during the 2000s and 2010s, when the global Gini coefficient dropped by 15 points and the earnings share of the world's poorest half doubled. Decomposition analyses show earnings convergence between countries and within occupations, while within-country earnings inequality has increased. Moreover, the falling global inequality trend was driven mainly by real wage growth, rather than changes in hours worked, taxes or occupational employment.


Reference:
Hammar, Olle and Daniel Waldenström (2020), "Global Earnings Inequality, 1970–2018". Economic Journal 130(632), 2526–2545.

Daniel Waldenström

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Olle Hammar

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olle.hammar@nek.uu.se

Interdisciplinary European Studies

The European Union and the Return of the Nation State

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This book explores the complex and ever-changing relationship between the European Union and its member states. The recent surge in tension in this relationship has been prompted by the actions of some member state governments as they question fundamental EU values and principles and refuse to implement common decisions seemingly on the basis of narrowly defined national interests.

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