Contents

9.1. Introduction 698

9.2. The Developing World: Characterization and Data 700

9.2.1 Developing Countries 700

9.2.2 Data Sources 701

9.3. Inequality: Levels 705

9.3.1 Inequality in the Developing Countries 706

9.3.2 InequalityBeyondtheGiniCoefficient 712

9.3.3 InequalityintheGallupWorldPoll 713

9.3.4 Top Incomes 715

9.3.5 InequalityandDevelopment 717

9.4.

9.4.1 General Changes 720

9.4.2 Changes by Region 725

9.4.2.1 East Asia and Pacific 727

9.4.2.2 Eastern Europe and Central Asia 729

9.4.2.3 Latin America and the Caribbean 730

9.4.2.4 Middle East and North Africa 733

9.4.2.5 South Asia 734

9.4.2.6 Sub-Saharan Africa 735

9.4.3 Inequality Convergence 737

9.4.4 Absolute Inequality 739

9.4.5 Aggregate Welfare 740

9.4.6 Trends from Tax Records 743

9.4.7 ExploringInequalityChanges 745

9.5. Poverty: Levels 753

9.5.1 Income Poverty in the Developing World 755

9.5.2 Poverty by Region 758

9.6. Poverty: Trends 763

9.6.1 Trends in Income Poverty 763

9.6.2 Decomposing Poverty Changes 768

9.6.3 The Cost of Closing the Poverty gap 769

9.6.4 Regional Trends 770

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ISSN 1574-0056, http://dx.doi.org/10.1016/B978-0-444-59428-0.00010-2

9.6.4.1 East Asia and Pacific 772

9.6.4.2 Eastern Europe and Central Asia 774

9.6.4.3 Latin America and the Caribbean 775

9.6.4.4 Middle East and North Africa 776

9.6.4.5 South Asia 777

9.6.4.6 Sub-Saharan Africa 777

9.6.5 Poverty Convergence 778

9.6.6 Poverty and Growth 779

9.6.7 Relative Poverty 787

9.7. Concluding Remarks 789

Acknowledgment 790

Appendix 791

References 796