Global Inequality of Opportunity: How Much of our Income is Determined by Where We Live?. Milanovic, B. Review of Economics and Statistics, 97(2):452-460, MIT Press Journals, 5, 2015.
Website abstract bibtex Suppose that all people in the world are allocated only two characteristics over which they have (almost) no control: country of residence and income distribution within that country. Assume further that there is no migration. We show that more than one-half of variability in income of world population classified according to their household per capita in 1% income groups (by country) is accounted for by these two characteristics. The role of effort or luck cannot play a large role in explaining the global distribution of individual income.
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title = {Global Inequality of Opportunity: How Much of our Income is Determined by Where We Live?},
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year = {2015},
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abstract = {Suppose that all people in the world are allocated only two characteristics over which they have (almost) no control: country of residence and income distribution within that country. Assume further that there is no migration. We show that more than one-half of variability in income of world population classified according to their household per capita in 1% income groups (by country) is accounted for by these two characteristics. The role of effort or luck cannot play a large role in explaining the global distribution of individual income.},
bibtype = {article},
author = {Milanovic, Branko},
journal = {Review of Economics and Statistics},
number = {2}
}