What You See Is …. Not All There Is: Global Income Inequality From a Quasi-Marxist Perspective
Rishabh Kumar
Review of Political Economy, 2025, vol. 37, issue 1, 142-164
Abstract:
The standard interpretation of inequality uses a number, such as the Gini coefficient, to compare income inequality across countries. These numbers apply universal upper limits to the maximum feasible inequality (Gini = 100) in vastly diverse economies even though floors for socially acceptable living standards vary quite a bit in different societies. I develop a new measure of income inequality — the Nationally Representative Inequality Extraction Ratio (NR IER) — and apply it to 112 countries. The NR IER uses country-by-country social and economic parameters to measure the distance between the actual income distribution and the country-specific feasible limit (a counterfactual distribution). I ground the counterfactual distribution in a functional income concept, corresponding to Marx’s concept of exploitation. NR IERs are inversely related to per-capita income and exceed the feasible limits in the world’s poorest countries. However, I find little variation in extractive inequality between closed autocracies (e.g., China) — where corruption is expectedly extractive — and liberal democracies (e.g., USA). Controlling for different political regimes, the NR IER explains over 60 per cent of a person’s income anywhere in the world.
Date: 2025
References: Add references at CitEc
Citations:
Downloads: (external link)
http://hdl.handle.net/10.1080/09538259.2023.2197399 (text/html)
Access to full text is restricted to subscribers.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:taf:revpoe:v:37:y:2025:i:1:p:142-164
Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/CRPE20
DOI: 10.1080/09538259.2023.2197399
Access Statistics for this article
Review of Political Economy is currently edited by Steve Pressman and Louis-Philippe Rochon
More articles in Review of Political Economy from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().