Figure 14.1 Income levels, growth rates and population, 1980–2010 Data source: World Development Indicators online; GDP per capita in constant 2000 US $; size of bubble in panel b is proportional to population size in 1980; information for 143 countries depicted, 131 with information plus 12 countries above 10 million people in 1980 with different time frame (as long as possible); together these countries account for 96 percent of the world population in 1980.

Figure 14.1 Income levels, growth rates and population, 1980–2010 Data source: World Development Indicators online; GDP per capita in constant 2000 US $; size of bubble in panel b is proportional to population size in 1980; information for 143 countries depicted, 131 with information plus 12 countries above 10 million people in 1980 with different time frame (as long as possible); together these countries account for 96 percent of the world population in 1980.

Figure 14.2 Total factor productivity index; 1989 = 100, Source: author’s calculations based on Conference Board Total Economy Database

Advanced degree Bachelor’s degree Some college High school high school Less than Source: based on Haskel et al. (2012); cumulative percentage changes relative to 1991 in mean real money earnings for working adults (aged 25 and above) by educational cohort in terms of the highest level of education attained (adjusted for price inflation and smoothed to three-year averages) Figure 14.3 Changes in US real income; working adults, by education,

Figure 14.4 Worker’s remittances received; per cent of GDP, 2010 Source: based on data from World Development Indicators online; worker’s remittances and compensation of employees received (% of GDP), based on 155 countries

Figure 14.5 Labour reallocation between Home and Foreign

Figure 14.6 Number of poor people in the developing world, Source: author’s calculations based on World Development Indicators online; the developing world consists of developing countries in EAP, ECA, LAC, MENA, SSA, and SA, see the main text.

Figure 14.7 Poverty headcount ratio at $ 1.25 a day (PPP), % of population, Source: author’s calculations based on World Development Indicators online; see the main text for regional abbreviations EAP, ECA, LAC, MENA, SSA, and SA

$50$500$5,000$50,000 20,000 60,000 40,000 0 Income level; constant 2000 international $, log scale poverty line World EA SSA SA OECD density a Figure 14.8 Global income distribution, 1970 and 2006 Source: based on Pinkovskiy and Sala-i-Martin (2009); the poverty line corresponds to $312 a year, or $1 a day in 2006 prices; see the main text for abbreviations; note: not all regions are identified in the figures

$50$500$5,000$50,000 40, ,000 80,000 0 Income level; constant 2000 international $, log scale poverty line World EA SSA SAOECD density b Figure 14.8 Global income distribution, 1970 and 2006 Source: based on Pinkovskiy and Sala-i-Martin (2009); the poverty line corresponds to $312 a year, or $1 a day in 2006 prices; see the main text for abbreviations; note: not all regions are identified in the figures Note for publisher: make sure the scales line up correctly horizontally for panels a and b

cumulative population cumulative income diagonal Lorenz curve A B Gini coefficient = A/(A+B) Figure 14.9 The Lorenz curve and the Gini coefficient

Figure Income inequality; Gini coefficient, selected countries, Source: author’s calculations based on World Development Indicators online; minimum is 19.4 for Czech Republic in 1988; maximum is 74.3 for Namibia in 1993

Figure Global income inequality; Gini coefficient, Source: based on data from Pinkovskiy and Sala-i-Martin (2009); note: scale does not start at zero

Figure Income inequality decomposition; across and within countries, Source: based on data from Sala-i-Martin (2006).

Figure Development and income inequality, some historical examples Source: based on World Bank (2009).