The relativity of decreasing inequality between countriesThe relativity of decreasing inequality between countries
Faculty of Social Sciences. Sociology
Herman Deleeck Centre for Social Policy
Economica / London School of Economics and Political Science. - London
81(2014):322, p. 276-292
University of Antwerp
We study the evolution of population-weighted between-country inequality in the period 19802009. Whereas previous studies almost exclusively focused on relative inequality measures, we consider relative, absolute and intermediate versions of the Lorenz dominance criterion and of the S-Gini and generalized entropy classes of inequality measures. The analysis yields robust evidence for increasing absolute inequality. Moreover, this conclusion is preserved for intermediate views substantially in the direction of the relative view. In contrast, robust evidence for decreasing inequalitybe it relative, absolute or intermediate is virtually absent. These findings challenge the widely accepted claim of decreasing between-country inequality.