Global Inequality of Opportunity: How Much of Our Income Is Determined by Where We Live?

  title={Global Inequality of Opportunity: How Much of Our Income Is Determined by Where We Live?},
  author={Branko Milanovic},
  journal={Review of Economics and Statistics},
  • B. Milanovic
  • Published 23 April 2015
  • Economics
  • Review of Economics and Statistics
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… 

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