Distribution of Consumption Expenditure in East Asia

27 Pages Posted: 27 Feb 2017

See all articles by La-Bhus Fah Jirasavetakul

La-Bhus Fah Jirasavetakul

International Monetary Fund (IMF)

Christoph Lakner

World Bank - Development Research Group (DECRG); University of Oxford - Department of Economics

Date Written: February 14, 2017

Abstract

Using a new database of household surveys, this paper examines inequality among all individuals living in developing East Asia regardless of their country of residence. The East Asian Gini index increased from 39.0 in 1988 to 43.3 in 2012. Inequality increased during the initial decade, regardless of the choice of inequality measure. The trend appears to have reversed in the mid-2000s. Regional inequality is now almost entirely explained by within-country differences, while gaps in average income across countries have become unimportant. This reversal has been driven by rising national inequality especially in populous countries, counteracted by catch-up growth in average incomes, particularly in China. Interpersonal differences in income at the regional level have thus become internalized within national boundaries.

Keywords: Equity and Development, Achieving Shared Growth, Pro-Poor Growth

Suggested Citation

Jirasavetakul, La-Bhus Fah and Lakner, Christoph, Distribution of Consumption Expenditure in East Asia (February 14, 2017). World Bank Policy Research Working Paper No. 7968, Available at SSRN: https://ssrn.com/abstract=2923519

La-Bhus Fah Jirasavetakul (Contact Author)

International Monetary Fund (IMF) ( email )

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Christoph Lakner

World Bank - Development Research Group (DECRG) ( email )

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HOME PAGE: http://www.worldbank.org/en/about/people/christoph-lakner

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