The Journal of Economic Inequality

, Volume 10, Issue 1, pp 1–18 | Cite as

Global inequality recalculated and updated: the effect of new PPP estimates on global inequality and 2005 estimates

  • Branko Milanovic


The results of new direct price level comparisons across 146 countries in 2005 have led to large revisions of PPP (purchasing power parity) exchanges rates, particularly for China and India. The recalculations of international and global inequalities, using the new PPPs, show that inequalities are substantially higher than previously thought. Inequality between global citizens is estimated at 70 Gini points rather than 65 as before. This high level of inequality is confirmed by the results obtained from the new set of 122 national household surveys from around year 2005.


Global inequality International inequality Purchasing power parity 

JEL Classification

D31 I3 057 


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Copyright information

© Springer Science+Business Media, LLC. 2010

Authors and Affiliations

  1. 1.World Bank, Research DepartmentWashingtonUSA
  2. 2.School of Public PolicyUniversity of MarylandMDUSA

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