Global Inequality of Opportunity: How Much of Our Income Is Determined by Where We Live?
Branko Milanovic
The Review of Economics and Statistics, 2015, vol. 97, issue 2, 452-460
Abstract:
Suppose that all people in the world are allocated only two characteristics over which they have (almost) no control: country of residence and income distribution within that country. Assume further that there is no migration. We show that more than one-half of variability in income of world population classified according to their household per capita in 1% income groups (by country) is accounted for by these two characteristics. The role of effort or luck cannot play a large role in explaining the global distribution of individual income. © 2015 The President and Fellows of Harvard College and the Massachusetts Institute of Technology
Keywords: residence; income distribution; migration; world population; global distribution; individual income (search for similar items in EconPapers)
JEL-codes: F00 J00 J40 J60 (search for similar items in EconPapers)
Date: 2015
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