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Does the Centre Hold? Testing Palma's Proposition (A Comment)

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  • Tim Hazledine

Abstract

type="main"> This Comment tests empirically the important proposition made by Palma in this journal (Development and Change, 2011) that deciles 5 to 9 of the income distribution across developing economies have been able to secure and defend a stable share (around 50 per cent) of the total available income, so that changes in income inequality are now a matter of struggle between the top 10 per cent and the bottom 40 per cent of the population, ranked by income. The author finds that the proposition does not hold: changes in top 10 per cent shares are matched by changes in the shares of both the other cohorts.

Suggested Citation

  • Tim Hazledine, 2014. "Does the Centre Hold? Testing Palma's Proposition (A Comment)," Development and Change, International Institute of Social Studies, vol. 45(6), pages 1409-1415, November.
    • Handle: RePEc:bla:devchg:v:45:y:2014:i:6:p:1409-1415
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    References listed on IDEAS

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    1. World Bank, 2012. "World Development Indicators 2012," World Bank Publications - Books, The World Bank Group, number 6014.
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    Cited by:

    1. Emine TAHSİN, 2019. "An Investigation of the Palma Ratio for Turkey Both on National and Regional Level," Sosyoekonomi Journal, Sosyoekonomi Society, issue 27(41).
    2. Alex Cobham & Luke Schlogl & Andy Sumner, 2015. "Inequality and the tails: The Palma proposition and ratio revised," Working Papers 366, ECINEQ, Society for the Study of Economic Inequality.
    3. Tahsin, Emine, 2019. "Concentration of income inequality on the basis of Palma ratio and income deciles of Turkey on national and regional level," MPRA Paper 92490, University Library of Munich, Germany.
    4. Alex Cobham & Lukas Schlögl & Andy Sumner, 2016. "Inequality and the Tails: the Palma Proposition and Ratio," Global Policy, London School of Economics and Political Science, vol. 7(1), pages 25-36, February.

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