This article presents a new data set on inequality in the distribution of income. The authors explain the criteria they applied in selecting data on Gini coefficients and on individual quintile groups' income shares. Comparison of the new data set with existing compilations reveals that the data assembled here represent an improvement in quality and a significant expansion in coverage, although differences in the definition of the underlying data might still affect intertemporal and international comparability. Based on this new data set, the authors do not find a systematic link between growth and changes in aggregate inequality. They do find a strong positive relationship between growth and reduction of poverty.

A New Data Set Measuring Income Inequality

The world economy has become more unequal over the last two centuries. Since within- country inequality exhibits no ubiquitous trend, it follows that virtually all of the observed rise in world income inequality has been driven by widening gaps between nations, while almost none of it has driven by widening gaps within nations. Meanwhile, the world economy has become much more globally integrated over the past two centuries. If correlation meant causation, these facts would imply that globalization has raised inequality between nations, but that it has had no clear effect on inequality within nations. This paper argues that the likely impact of globalization on world inequality has been very different from what these simple correlations suggest. Globalization probably mitigated rising inequality between participating nations. The nations that gained the most from globalization are those poor ones that changed their policies to exploit it, while the ones that gained the least did not, or were too isolated to do so. The effect of globalization on inequality within nations has gone both ways, but here too those who have lost the most from globalization typically have been the excluded non-participants. In any case far too small to explain the observed long run rise in world inequality.

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Does Globalization Make the World More Unequal

Despite serious methodological problems, quantitative studies of poverty by U.S. sociologists predominantly rely on the official U.S. measure. After reviewing the shortcomings of the U.S. measure, this article examines several theoretical and methodological advances in poverty measurement. After synthesizing literature on poverty measurement, I argue that ideal measures of poverty should: (1) measure comparative historical variation effectively; (2) be relative rather than absolute; (3) conceptualize poverty as social exclusion; (4) assess the impact of taxes, transfers, and state benefits; and (5) integrate the depth of poverty and the inequality among the poor. Next, this article evaluates sociological studies published since 1990 for their consideration of these criteria. Due to sociology’s neglect of these criteria, this article advocates for three alternative poverty indices: the interval measure, the ordinal measure, and the sum of ordinals measure. Finally, using the Luxembourg Income Study, I examine the empirical patterns with these three measures, across advanced capitalist democracies from 1967 to 1997. Estimates of these poverty indices are made available for future research.

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Rethinking the Sociological Measurement of Poverty

Class structures have undergone important changes in recent decades with the rise of post-industrial societies. Clark and Lipset have recently interpreted these changs as evidence that class is fra...

The persistence of classes in post-industrial societies:

This paper summarises trends and driving factors in income distribution and poverty in 21 OECD Member countries analysing separately the working- and the retirement-age populations. Shifts in relative incomes in the past ten years generally favoured prime-age and elderly age groups. Persons living in multi-adult households have seen their income shares rise somewhat, especially in households without children, or when there are two or more earners present. On the other hand, younger age groups generally lost ground, and relative income levels of single parents and persons in households with no earners tended to weaken further in many countries.
There has been no generalised long-term trend in the distribution of disposable household incomes since the mid-1970s. However, during the more recent period (mid-1980s to mid-1990s), income inequality has increased in about half of the OECD countries studied, while none of the remaining countries recorded an unambiguous decrease in ...

Trends and driving factors in income distribution and poverty in the OECD area

This collection focuses on the concepts and measurements of inequality, poverty, the concentration of wealth, and the implications of these issues for social policies. A special feature of this work is the international comparisons of the evidence on economic inequality.

Lars Osberg

Papers

Economic Inequality and Poverty: International Perspectives: International Perspectives