Branko Milanovic | The greatest reshuffle of individual incomes since the Industrial Revolution | VOX, CEPR’s Policy Portal

The greatest reshuffle of individual incomes since the Industrial Revolution | VOX, CEPR’s Policy Portal

The effects of of globalisation on income distributions in rich countries have been studied extensively. This column takes a different approach by looking at developments in global incomes from 1988 to 2008. Large real income gains have been made by people around the median of the global income distribution and by those in the global top 1%. However, there has been an absence of real income growth for people around the 80-85th percentiles of the global distribution, a group consisting of people in ‘old rich’ OECD countries who are in the lower halves of their countries’ income distributions.