Branko Milanovic, 06 October 2020

Recent analyses of developments in global inequality have largely been based on relatively old data. By widening the country coverage and using household-based data from each country, this column surveys developments in the global income distribution since the 2008 Global Crisis and brings the analysis up to 2013-14. Broadly speaking, the post-2008 period was good for the globally poor and for the global middle class; it was not good for the Western middle classes and the global top 1%. If developments from the past three decades continue for another 20 years, the gap between the West and Asia will shrink further and will eventually entirely disappear.

Arun Advani, Felix Koenig, Lorenzo Pessina, Andy Summers, 17 September 2020

Top incomes have grown rapidly in recent decades and this growth has sparked a debate about rising inequality in Western societies. This column combines data from UK tax records with new information on migrant status to show that that migrants are highly represented at the top of the UK’s income distribution. Indeed, migration can account for the majority of top-income growth in the past two decades and can help explain why the UK has experienced an outsized increase in top incomes.

Laurent Bach, Laurent Calvet, Paolo Sodini, 07 July 2017

A growing literature conjectures that wealthy households earn higher average returns, which can further exacerbate wealth inequality. Using Swedish administrative data, this column shows that the wealthy indeed earn higher returns on their asset portfolios. These high returns are primarily due to high levels of compensated risk. Households at the top of the wealth distribution further exhibit highly heterogeneous investment performance due to high levels of idiosyncratic risk.

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