Global distributions of capital and labor incomes: capitalization of the global middle class

Ranaldi, Marco (2022) Global distributions of capital and labor incomes: capitalization of the global middle class. International Inequalities Institute Working Papers (77). International Inequalities Institute, London School of Economics and Political Science, London, UK.

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Abstract

This article studies the global distributions of capital and labor incomes among individuals in 2000 and 2016. By constructing a novel database covering approximately the 80% of the global output and the 60% of the world population, two major findings stand out. First, the world underwent an important process of capitalization. The share of world individuals with positive capital income rose from 20% to 32%. Second, the global middle class benefited the most, in relative terms, from such capitalization process, and China is the main responsible of this global trend. The findings of this paper are robust to changes in the income definition, and top-income adjustments. The global composition of capital and labor incomes is, therefore, more equal today than it was twenty years ago.

Item Type:	Monograph (Working Paper)
Official URL:	https://www.lse.ac.uk/International-Inequalities/P...
Additional Information:	© 2022 The Author
Divisions:	International Inequalities Institute
Subjects:	H Social Sciences > HC Economic History and Conditions
JEL classification:	D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions
Date Deposited:	03 Mar 2022 08:18
Last Modified:	14 Sep 2024 04:16
URI:	http://eprints.lse.ac.uk/id/eprint/113899

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