James K. Galbraith

This paper summarizes a comprehensive revision and update of UTIP's work on the inequality of pay and incomes around the world, covering the years 1963 to 2008. The new UTIP-UNIDO data set of industrial pay inequality has 4054 country-year observations over for 167 countries, while the updated and revised EHII data set of estimated gross household income inequality has 3871 observations over 149 countries. The paper also provides comparisons of the EHII data set with a wide range of measures and estimates drawn from other work. They show in general that EHII is a reliable reflection of trends, and a reasonable, though not perfect, estimator of the levels of inequality found in surveys. These updates, revisions and quality checks were supported by a grant from the Institute for New Economic Thinking.

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