The Elephant Curve of Global Inequality and Growth

Facundo Alvaredo · Lucas Chancel · Thomas Piketty · Emmanuel Saez · Gabriel Zucman

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Income, Poverty, and Inequality Economic Theory and Policy Economic Growth and Productivity

Abstract

We 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.

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2014Capital in the Twenty-First Century 2015Global Income Distribution: From the Fall of the Berlin Wall to the Great Recession

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