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Global Inequality of Opportunity: How Much of Our Income Is Determined by Where We Live?

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  • Branko Milanovic

    (University of Maryland)

Abstract

Suppose that all people in the world are allocated only two characteristics over which they have (almost) no control: country of residence and income distribution within that country. Assume further that there is no migration. We show that more than one-half of variability in income of world population classified according to their household per capita in 1% income groups (by country) is accounted for by these two characteristics. The role of effort or luck cannot play a large role in explaining the global distribution of individual income. © 2015 The President and Fellows of Harvard College and the Massachusetts Institute of Technology

Suggested Citation

  • Branko Milanovic, 2015. "Global Inequality of Opportunity: How Much of Our Income Is Determined by Where We Live?," The Review of Economics and Statistics, MIT Press, vol. 97(2), pages 452-460, May.
    • Handle: RePEc:tpr:restat:v:97:y:2015:i:2:p:452-460
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    More about this item

    Keywords

    residence; income distribution; migration; world population; global distribution; individual income;
    All these keywords.

    JEL classification:

    • F00 - International Economics - - General - - - General
    • J00 - Labor and Demographic Economics - - General - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General

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