Figure 14.1 Income levels, growth rates and population, 1980–2010
a. Initial income and economic growth, 1980-2010
10
annual growth, 1980-2010 (%)
8
6
Other countries
4
2
0
100
-2
-4
1,000
African countries
10,000
100,000
GDP per capita in 1980 (log scale)
-6
Data source: World Development Indicators online; GDP per capita in constant 2000 US $; size of bubble in panel
b is proportional to population size in 1980; information for 143 countries depicted, 131 with 1980-2010
information plus 12 countries above 10 million people in 1980 with different time frame (as long as possible);
together these countries account for 96 percent of the world population in 1980.
Figure 14.1 Income levels, growth rates and population, 1980–2010
b. Initial income, population, and economic growth, 1980-2010
12
annual growth, 1980-2010 (%)
10
8
China
Other countries
6
4
India
2
0
100
-2
-4
1,000
African countries
10,000
100,000
GDP per capita in 1980 (log scale)
-6
Data source: World Development Indicators online; GDP per capita in constant 2000 US $; size of bubble in panel
b is proportional to population size in 1980; information for 143 countries depicted, 131 with 1980-2010
information plus 12 countries above 10 million people in 1980 with different time frame (as long as possible);
together these countries account for 96 percent of the world population in 1980.
Figure 14.2 Total factor productivity index; 1989 = 100, 1989-2011
Total Factor Productivity index; 1989 = 100, 1989-2011
TFP index
170
166
China
140
Germany
123
USA
110
112
105
Japan
80
1989
1995
2001
2007
Source: author’s calculations based on Conference Board Total Economy Database
year
2013
Figure 14.3 Changes in US real income; working adults, by education, 19912010
Bachelor’s degree
20
15
Advanced degree
10
High school
5
Some college
2010
2008
2006
2004
2002
2000
1998
1996
1994
-5
1992
0
Source: based on Haskel et al. (2012); cumulative percentage changes relative to 1991 in mean real money
earnings for working adults (aged 25 and above) by educational cohort in terms of the highest level of education
attained (adjusted for price inflation and smoothed to three-year averages)
Figure 14.4 Worker’s remittances received; per cent of GDP, 2010
40
Tajikistan
remittances
Worker's remittances received (% of GDP) and per cent rank, 2010
Lesotho
30
Kyrgyz Rep
Haiti
20
Jamaica
Philippines
10
Morocco
average
0
0
China
Uruguay
Chile
10
20
30
Belgium India
40
50
60
Ukraine
70
80 rank 90
Source: based on data from World Development Indicators online; worker’s remittances and compensation of
employees received (% of GDP), based on 155 countries
100
Figure 14.5 Labour reallocation between Home and Foreign
VMPLhome
VMPLforeign
wF0
C
Ohome
wF1
A
wH1
wH0
B
LH
E1
E0
LF
Oforeign
Figure 14.6 Number of poor people in the developing world, 1981-2008
3,500
a. Number of poor people in developing
world; headcount index, million
70
2,901
3,000
2,453
1,906
70.5
60
$2 per day
2,500
2,000
80
b. Number of poor people in developing
world; headcount index, % of population
50
$2 per day
52.9
43.6
40
1,500
$1.25 per day
1,281
1,000
$1.25 per day
22.8
20
500
0
1980
30
10
0
1990
2000
2010
1980
1990
2000
2010
Source: author’s calculations based on World Development Indicators online; the developing world consists of
developing countries in EAP, ECA, LAC, MENA, SSA, and SA, see the main text.
Figure 14.7 Poverty headcount ratio at $ 1.25 a day (PPP), % of population,
1981-2008
Poverty headcount ratio at $1.25 a day (PPP), % of population
80
EAP
SSA
60
SA
40
Developing world total
20
LAC
MENA
ECA
0
1981
1984
1987
1990
1993
1996
1999
2002
2005
Source: author’s calculations based on World Development Indicators online; see the main text for regional
abbreviations EAP, ECA, LAC, MENA, SSA, and SA
2008
Figure 14.8 Global income distribution, 1970 and 2006
density
a. 1970
poverty line
60,000
World
40,000
EA
20,000
SA
OECD
SSA
0
$50
$500
$5,000
$50,000
Income level; constant 2000 international $, log scale
Source: based on Pinkovskiy and Sala-i-Martin (2009); the poverty line corresponds to $312 a year, or $1 a day in
2006 prices; see the main text for abbreviations; note: not all regions are identified in the figures
Figure 14.8 Global income distribution, 1970 and 2006
density
120,000
b. 2006
poverty line
World
80,000
40,000
EA
SA
OECD
SSA
0
$50
$500
$5,000
$50,000
Income level; constant 2000 international $, log scale
Source: based on Pinkovskiy and Sala-i-Martin (2009); the poverty line corresponds to $312 a year, or $1 a day in
2006 prices; see the main text for abbreviations; note: not all regions are identified in the figures
Note for publisher: make sure the scales line up correctly horizontally for panels a and b
Figure 14.9 The Lorenz curve and the Gini coefficient
1
cumulative income
Gini coefficient = A/(A+B)
A
B
0
0
cumulative population
1
Figure 14.10 Income inequality; Gini coefficient, selected countries, 1981-2010
Gini coefficients for selected countries; per cent 1981-2010
80
maximum
70
60
South Africa
Brazil
50
Nigeria
40
Russia
India
30
China
20
minimum
10
0
1980
1985
1990
1995
2000
2005
2010
Source: author’s calculations based on World Development Indicators online; minimum is 19.4 for Czech Republic
in 1988; maximum is 74.3 for Namibia in 1993
Figure 14.11 Global income inequality; Gini coefficient, 1970-2006
Global income inequality; Gini coefficient, 1970-2006
0.75
0.70
0.679
0.65
0.612
0.60
0.55
1970
1975
1980
1985
1990
1995
2000
Source: based on data from Pinkovskiy and Sala-i-Martin (2009); note: scale does not start at zero
2005
Figure 14.12 Income inequality decomposition; across and within countries,
1970-2000
a. Global income inequality;
mean logarithmic deviation, 1970-2000
1.0
b. Global income inequality;
Theil index, 1970-2000
1.0
0.8
0.8
within countries
within countries
0.6
0.6
0.4
0.4
Source: based on data from Sala-i-Martin (2006).
2000
1997
1994
1991
1988
1985
1982
1976
1973
1970
2000
1997
1994
1991
1988
1985
1982
1979
0.0
1976
0.0
1973
0.2
1970
0.2
1979
across countries
across countries
Figure 14.13 Development and income inequality, some historical examples
Coefficient of variation
of regional income
0.6
Sweden, 1920-1961
0.5
Spain,
18601975
0.4
USA, 1840-1960
0.3
0.2
Japan,
1955-1983
0.1
0
2
Source: based on World Bank (2009).
4
6
8
10
12
14
Income per capita (PPP, thousands)