World Income Inequality: Nature and Trends

AUTHOR
Debesh Bhowmik *

KEYWORDS
World Income inequality, Gap of income share, Gini coefficients, ARIMA model,

ABSTRACT
The paper examined the trends of world income inequality between the income share of the richest 10% and the poorest 50% by applying semi-log nonlinear trend model, decomposition of trends by H. .Filter and Hamilton models taking data from World Inequality Database from 1980 to 2021.The cyclical trend of the richest 10% is inverse s type in comparison with inverse u shaped of bottom 50%.The model showed that income inequality is inverted U shaped in trends and consists of many peaks and troughs in cycle. ARIMA(0,0,4) model is significant and convergent and remain stable in forecast model for 2050.