We analyze the evolution of intercountry income inequality and its decomposition between and within four geographical clusters and their fifteen regions from 1960 to 1990 by applying the income-weighted entropy measure. Our analysis assesses the contribution of income inequality within and...

By applying the Theil index of income inequality and its decomposition between and within groups to income data adjusted for purchasing power parity on 115 countries between 1960 and 1985, we find that the worldwide level of intercountry income inequality declined steadily by 0.584% per annum,...