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A widening global divide? A bipolarization analysis
1 : Université Clermont Auvergne
(UCA)
Centre d'Etudes et de Recherche sur le Développement International - CERDI
49, bd François-Mitterrand / CS 60032 / 63001 Clermont-Ferrand Cedex 1 -
France
2 : Leeds University Business School
In contrast to reported improvements in world inequality, we document the decline of the world middle class between 2002 and 2012, as interpreted by the bipolarization approach. Using a balanced panel of countries representing more than 80% of the world's population, we find that reduced inequality within the world's bottom 50% is the main driver of higher relative bipolarization; while that inequality reduction among the bottom 50% together with a widening gap in mean income between the world's top
and bottomhalves help explain the observed rise in absolute bipolarization. The crucial role of Chinese economic progress is also underlined.
