1UNITEDNATIONSDEVELOPMENTPROGRAMMEDEVELOPMENTFUTURESSERIESFEBRUARY2022TheInequalityGap:TheBottom40MayBeFurtherAwayThanWeThoughtbyChristianOldigesandShivaniNayyar1ThispaperexploresnewdataonincomeinequalitybytheWorldInequalityDatabase,whichcorrectsunderreportingofincomeinthetopdecilesoftheincomedistribution.Wefindthatwithinalllowandmiddleincomecountries,thebottom40incomesharesaremuchlowerthanwepreviouslythought,whilethetop10incomesharesaremuchhigher.ImportantforSustainableDevelopmentGoal10.1,thebottom40incomeshareshavebeengrowingatamuchslowerpacethanestimatedearlierandoftenatalowerratethanthetop10shares.Demonstratingthevalueofimproveddatasets,thispapercalls...
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