Extreme Inequality: Evidence from Brazil, India, the Middle East, and South Africa

Lydia Assouad (), Lucas Chancel and Marc Morgan
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Lydia Assouad: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique
Marc Morgan: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

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Abstract: This paper presents new findings about inequality dynamics in Brazil, India, the Middle East, and South Africa from the World Inequality Database (WID.world). We combine tax data, household surveys, and national accounts in a systematic manner to produce estimates of the distribution of income, using concepts coherent with macroeconomic national accounts. We document an extreme level of inequality in these regions, with top 10 percent income shares above 50 percent of national income. These societies are characterized by a dual social structure, with an extremely rich group at the top, whose income levels are broadly comparable to their counterparts in high-income countries, and a much poorer mass of the population below top groups. We discuss the diversity of regional contexts and highlight two explanations for the levels observed: the historical legacy of social segregation and modern economic institutions and policies.

Date: 2018
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Citations: View citations in EconPapers (22)

Published in American Economic Review Papers and Proceedings, 2018, 108, pp.119-23. ⟨10.1257/pandp.20181076⟩

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Related works:
Journal Article: Extreme Inequality: Evidence from Brazil, India, the Middle East, and South Africa (2018)
Working Paper: Extreme Inequality: Evidence from Brazil, India, the Middle East, and South Africa (2018)
Working Paper: Extreme Inequality: Evidence From Brazil, India, the Middle-East, and South Africa (2018)
Working Paper: Extreme Inequality: Evidence From Brazil, India, the Middle-East, and South Africa (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-02489068

DOI: 10.1257/pandp.20181076

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