After the Financial Crisis: The Evolution of the Global Income Distribution Between 2008 and 2013

Authors: Branko Milanovic

Publication: The Review of Income and Wealth, vol. 68, no. 1, pp. 43–73.

Date: March 2022

Abstract:

Using the newly created, and in terms of coverage and detail, the most complete household income data from more than 130 countries, the paper analyzes the changes in the global income distribution between 2008 and 2013. This was the period of the global financial crisis and recovery. It is shown that global inequality continued to decline, largely due to China’s and India’s high growth rates that explain about two-thirds of the global Gini decrease between 2008 and 2013. Income growth of the global top 1 percent slowed significantly. The slowdown is present even after survey data are corrected for the likely underestimation of highest incomes.

Link: After the Financial Crisis: The Evolution of the Global Income Distribution Between 2008 and 2013 [PDF]

Preprint Version: Stone Center Working Paper Series no. 18