Income inequality across nations over time, how much and why?

Abstract

The paper aims at the (a) measurement of the extent of income inequality across countries, (b) measurement of the change in income inequality over the last decade, (c) examination of the factors responsible for the income inequality, and (d) identification of the shape and position of the Kuznets' curve. Twenty-seven countries data at two points of time, one in 1960s and the other in 1970s, have been used. The six alternative measures of inequality, i.e. income share of the lowest 20% population, income share of the top 20% population, Gini coefficient, Their index I (based on income weights), Theil index II (based on population weights) and Kuznets index, and the regression technique have been used for the analysis.