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Cross-country convergence in income inequality

Neoclassical models imply convergence of the entire distribution, not just the mean income levels. In this paper, we analyze convergence in income inequality by using the considerably enlarged data bases, from the World Bank (Povcal) and the World Institute for Development Economic Research (WIDER). Convergence in gini indices of inequality is tested across 55 countries. We consider three sample subsets; one for the developing countries, second of the developed countries and third with all countries together. We test for convergence in gini indices over a period of 5, 10, 15, 20 and 25 years. Additionally we use cross-section (OLS),panel (GMM) and a novel OLS estimation methods. Our results uniformly indicate that inequality levels among developing countries converged. Evidence of convergence is weaker among developed countries. Developing countries appear to converge faster than developed countries.

Identiferoai:union.ndltd.org:GATECH/oai:smartech.gatech.edu:1853/45884
Date13 November 2012
CreatorsMiao, Xing
PublisherGeorgia Institute of Technology
Source SetsGeorgia Tech Electronic Thesis and Dissertation Archive
Detected LanguageEnglish
TypeThesis

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