GLOBAL

INCOME
INEQUALITY
Global inequality involves the concentration
of resources in certain nations, significantly
affecting the opportunities of individuals in
poorer and less powerful countries.
Nations are divided into North or
South, developed and less developed,
core and periphery. These divisions re-
flect one key aspect of Globalization
mainly inequality.
 Economic inequalities are most obvi-
ously shown by people’s different
positions within the economic distri-
bution - income, pay, wealth.

2 TYPES OF ECONOMIC INEQUALITIES

1. Wealth Inequality
2. Income Inequality
 WEALTH INEQUALITY
Wealth would talk about the net worth of a country.
All the assets (natural, physical, human).
Wealth inequality, also known as the wealth gap, is
a measure of the distribution of wealth, essentially
the difference between the richest of the rich and
the poorest of the poor, in a given country, state,
city, or demographic group.
 Global wealth today is estimated at about
260 trillion dollars, and is not distributed
equally. One study shows that;

• North America and Europe, while they have less than

20% of the world's population, have 67% of the
world's wealth.
• China, which has more people than North America
and Europe combined, has only about 8% of the
wealth.
• India and Africa together make up almost 30% of the
population, but only share about 2% of the world's
 INCOME INEQUALITY

Income inequality is how unevenly

income is distributed throughout a
population. The less equal the dis-
tribution, the higher income in-
equality is.
 ECONOMIC BIGBANG - " at
first, countries' incomes were
all bunched together, but
with the Industrial Revolution
the differences exploded. It
pushed some countries for-
ward onto the path to higher
incomes while others stayed
where they had been for mil-
Branko Milanovic lennia."
• The Industrial Revolution created a lot of inequality
between countries. But today, globalization and
international trade are accelerating it.

• skill-biased technological change - the jobs cre-

ated in modernized economies are more technol-
ogy-based, generally requiring new skills. Workers
that have the education and skills to do those jobs
thrive, while others are left behind.
 END
THANK YOU
https://equalitytrust.org.uk/how-economic-inequality-defined

Implications of skill-biased technological change: international evidence

Eli Berman, John Bound, Stephen Machin
The quarterly journal of economics 113 (4), 1245-1279, 1998

Working for the few: Political capture and economic inequality

Ricardo Fuentes-Nieva, Nicholas Galasso
Oxfam, 2014

https://wir2022.wid.world

https://sites.google.com/a/oroville.wednet.edu/politcal-science-125-globa
l-issues-winter-2017/part-3-lesson-48-income-and-wealth-inequality