Whither Income Inequalities?

23 Pages Posted: 12 Dec 2013

See all articles by Jomo Kwame Sundaram

Jomo Kwame Sundaram


Vladimir Popov

Central Economics and Mathematics Institute (CEMI); New Economic School (NES)

Date Written: December 11, 2013


Some major trends in world income inequalities and relevant economic trends are reviewed here. In recent decades, there have been indications of a reversal of the growing income divergence between North and South after over half a millennium, especially in the last two centuries. Meanwhile, income inequalities within most countries have been growing again, increasing social tensions, which may jeopardize growth in some countries and reshape global economic competition. In the 1960s, when the profit rate and capital’s share of national income in Western countries were highest, income inequality within countries was at a historical low. Since the 1980s, the increasing share of profits in national income and rising inequality within countries have gone hand in hand.

Keywords: Income inequalities within countries, divergence and convergence in the world economy, share of capital and labor in national income

JEL Classification: F02, F63, I30, J31, N00

Suggested Citation

Sundaram, Jomo Kwame and Popov, Vladimir, Whither Income Inequalities? (December 11, 2013). Available at SSRN: https://ssrn.com/abstract=2366510 or http://dx.doi.org/10.2139/ssrn.2366510

Jomo Kwame Sundaram

IDEAs ( email )

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Vladimir Popov (Contact Author)

Central Economics and Mathematics Institute (CEMI) ( email )

Nakhimovsky Prospect 47
Moscow, 117418

New Economic School (NES) ( email )

100A Novaya Street
Moscow, Skolkovo 143026

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