Global Income Inequality
Beliefs, facts and unresolved issues
Arne Melchior
Published: September 2001
While several international organisations have argued that income gaps between
countries have increased during the last decades, the opposite conclusion is
obtained if countries are weighted according to their population size, and if price-level-adjusted income data are applied. Inequality measures that give higher
weight to the poorest countries also support this conclusion. Due to falling
incomes in a number of poor countries, however, the gap between the richest and
poorest countries has widened, and unambiguous conclusions about welfare are
difficult to draw.