CHILD POVERTY AND INEQUALITY: THE WAY FORWARD

(Barry) #1

Figure 4 and Table 5 show the distribution of world income from


1990 to 2007 using a PPP dataset in constant 2005 international


dollars. While the overall picture of global inequality improves


under the PPP measure, the data still confirm grave income


disparities. As of 2007, the top 20% of the world controlled about


70% of total income compared to just two percent for the bottom


20%. Regarding change, the poorest 40% of the global population


increased its share of total income by a meager 1.7% between 1990


and 2007. Table 6 lists the ten highest and lowest income quintiles


for the world in 2007 using PPP exchange rates, and Figure 5


presents the three-dimensional illustration of income distribution


also under PPP-adjusted exchange rates.


Figure 4. Global Income Distribution by Population Quintiles, 1990- 2007

(or latest available) in PPP constant 2005 international dollars


Source: Authors’ calculations using World Bank (2011), UNU-WIDER (2008) and Eurostat (2011)


Table 5. Summary Results of Global Income Distribution by Population
Quintiles, 1990-2007 (or latest available) in PPP constant 2005 intl. $

1990 Global Distribution (%) 2000 2007

Q5 75.3 74.4 69.5

Q4 (^) 14.9 14.2 16.5
Q3 5.4 6.3 7.8
Q2 3. 0 3.4 4.2
Q1 1.5 1.7 2.0


of observations 99 127 136


% of global
population
86.1 91.1 92.4
% of global GDP 85.3 87.4 88.6
Source: Authors’ calculations using World Bank (2011) and UNU-WIDER (2008)

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