Must-Read: Tomas Hellebrandt and Paolo Mauro: The Future of Worldwide Income Distribution

Must-Read: I am not sure that this is right. Rapid economic growth in the emerging-market economies–actual catch-up–is a phenomenon limited to 1980-2015, and is driven by China and India. Otherwise the rest have merely kept pace with the Global North + Pacific Rim. And the rest have fallen behind Global North + Pacific Rim + China + India. The future global between-country income distribution picture looks very cloudy to me…

Tomas Hellebrandt and Paolo Mauro: The Future of Worldwide Income Distribution: “Over the next two decades the structure of world population and income will undergo profound changes…

…Global income inequality is projected to decline further in 2035, largely owing to rapid economic growth in the emerging-market economies. The potential pool of consumers worldwide will expand significantly, with the largest net gains in the developing and emerging-market economies. The number of people earning between US$1,144 and US$3,252 per year in 2013 prices in purchasing power parity terms will increase by around 500 million, with the largest gains in Sub-Saharan Africa and India; those earning between US$3,252 and US$8,874 per year in 2013 prices will increase by almost 1 billion, with the largest gains in India and Sub-Saharan Africa; and those earning more than US$8,874 per year will increase by 1.2 billion, with the largest gains in China and the advanced economies.