 Capitalization of the world: global distribution of income from property, 2000-2020Branko Milanovic and Marco Ranaldi LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library Abstract: Global capital income inequality has declined in the 21st century, with the Gini coefficient falling from 97% to 94%. Over the same period, the share of the world population with annual capital income above $100 increased from 12% to 27%. This implies more than a doubling of the number of individuals earning positive income from interest, dividends, rents, and privately-funded pensions. Most Western nations have lost positions in the global capital income ranking, in contrast to several developing countries, particularly China and Russia. When adjusting for missing capital income in surveys using national accounts, while the levels of inequality slightly vary across adjustment methods, the results consistently confirm a decreasing inequality trend. This is also confirmed when the capitalized wealth of billionaires is included in the analysis using Forbes lists. Overall, this paper provides new global evidence on the evolution, distribution, and measurement of capital income, and highlights its implications for inequality analysis in contemporary capitalism. Keywords: global linequality; capitalization; globalization (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:137550 Access Statistics for this paper More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC. |
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