*7.2 how about pure inequality?: ginis and lorenz - world
TRANSCRIPT
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*7.2 How about Pure Inequality?:Ginis and Lorenz - World and Brazil
*7.2 Social Economics and Public Policy – Marcelo Neri
Marcelo Neri
FGV Social
Gini Index and Lorenz Curve
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Graph from the Lorenz Curve L(P)
Alternative Formula
𝛾 = 𝑁 + 1
𝑁 − 1−
2
𝑁 (𝑁 − 1)𝜇 𝜌𝑖 𝑥𝑖
𝑁
𝑖=1
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Lorenz curves 1988 and 2011 - Global
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0
10
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30
40
50
60
70
80
90
100
0 10 20 30 40 50 60 70 80 90 100
There is not Lorenz dominance of 2011 wrt 1988
1988 2011 perfect equality
2011
Source: Milanovic
Lorenz curves 2008 and 2011 - Global
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0
10
20
30
40
50
60
70
80
90
100
0 10 20 30 40 50 60 70 80 90 100
There is Lorenz dominance of 2011 wrt 2008
2008 2011 perfect equality
2011
Source: Milanovic
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Generalized Lorenz curves 1988 and 2008 - Global
5Source: Milanovic
There is generalized Lorenz dominance of 2008 wrt 1988
0
500
1000
1500
2000
2500
3000
3500
4000
4500
0 10 20 30 40 50 60 70 80 90 100
Ave
rage
cu
mu
lati
ve p
er c
ap
ita
inco
me
Cumulative percentage of people
2008
1988
Generalized Lorenz Curve L(μ,P) = μ L(P)
Branko Milanovic
30
35
40
45
50
55
60
65
70
75
1800 1850 1900 1950 2000 2050
Global Gini 1820-2011
B-M series
L-M and M series
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Inequality Across Nations - Unweighted
Overall Inequality
.45
.55
.65
.75
Gin
i Co
effi
cien
t
1950 1960 1970 1980 1990 2000 2010year
China Effect ChIndia Effect
Source: Milanovic (2011)
Inequality Across Nations – Weighted by Population
Evolution of World Income InequalityDifferent Concepts
Source: Milanovic (2011) and Neri (2011)
Brazil is a small World
1950 1960 1970 1980 1990
2013
2000
2001Year
Gin
iCo
effi
cien
t
.75
.65
.55
.45
0.535
0.5810.589
0.607
0.5144
0.539
0.594
China Effect ChIndia Effect
Inequality Across Nations
Was Falling in Brazilbut still the 12th highest
in 159 countries
Brazilian Per capita GDP PPP has grown 3.5% agains 3.6% of the world between 2002 e 2012
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0
10
20
30
40
50
60
1000 10000 100000
Gin
i of
dis
po
sab
le p
er c
apit
a in
com
e
GDP per capita (in 1990 international dollars; Maddison)
Kuznets relationship for the United States, 1774-2013
1860
1929
2013
194
1979
1774
1933
Branko Milanovic
0
0,05
0,1
0,15
0,2
0,25
0,3
0,35
Urb
an G
ini
Year
Urban Gini in China: 1981-2014 (based on official household surveys)
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Where are now China and the US?
China 2013United States 2013
GDP per capita
Gini First Kuznets wave Second Kuznets wave
0.535
Inequality of Per Capita Income (Gini)
Source: CPS;FGV from PNAD, PME and Census / IBGE microdata and Langoni (1973)
0.581
0.589
0.607
0.592
0.560
0.543
0.523
1960 1970 1979 1990 2001 2007 2009 2013
Year
Ineq
ual
ity
(Gin
i)
0,5
0,48
0,52
0,54
0,56
0,58
6
62
Long Run & Regional Perspective Latin America Latina last 3 Decades
Kuznets curves orKuznets Waves?Milanovic (2016)
Cornia (2014) on CEDLAS & CEPAL
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BRAZIL GINI HOUSEHOLD PER CAPITA INCOME – ALL SOURCES
Source FGV Social from PNAD and PNADC/IBGE microdata – Harmonized PNAD 2004-2015 guided
0,63
46
0,59
45
0,59
96
0,64
72
0,59
28
0,61
52
0,60
65
0,53
50
0,52
49
0,52
42
0,54
51
0,50
0,52
0,54
0,56
0,58
0,60
0,62
0,64
0,661
97
6
19
77
19
78
19
79
19
80
19
81
19
82
19
83
19
84
19
85
19
86
1987
19
88
19
89
19
90
19
91
19
92
19
93
19
94
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95
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96
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97
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98
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99
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00
20
01
2002
20
03
20
04
20
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2017
20
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Branko Milanovic
0
10
20
30
40
50
60
70
0 1000 2000 3000 4000 5000 6000 7000 8000
Gin
i
GDP per capita (in 1990 international dollars)
The Kuznets relationship for Brazil, 1839-2013
2013
1991
1972
1930
1885
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Inequality by Municipalities Gini Index of Per Capita Incomeby Municipality - 2000
Source: Demographic Census/IBGE microdata
2000
2010
Inequality by Municipalities Gini Index of Per Capita Incomeby Municipality - 2000
Source: Demographic Census/IBGE microdata
Inequality fell in 80% of the 5500 BrazilianMunicipalities
Inequality fell in 83% of LatinAmerica countries and 40% of World Countries
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Inequality in Latin America