The Quantity and Quality of Life and the Evolution of World Inequality

45 Pages Posted: 8 Jun 2003 Last revised: 9 Mar 2022

See all articles by Gary S. Becker

Gary S. Becker

University of Chicago - Department of Economics; University of Chicago - Booth School of Business

Tomas Philipson

University of Chicago; National Bureau of Economic Research (NBER)

Rodrigo R. Soares

Columbia University - School of International & Public Affairs (SIPA); Getulio Vargas Foundation (FGV) - Sao Paulo School of Economics; IZA Institute of Labor Economics

Date Written: June 2003

Abstract

Lack of income convergence for the world as a whole has led to concerns about the impact of globalization of markets on world inequality. GDP per capita is usually used to proxy for the quality of life of individuals living in different countries. However, well-being is also affected by quantity of life, as represented by longevity. This paper incorporates longevity into an overall assessment of the evolution of cross-country inequality. The absence of income convergence noticed in the growth literature is in stark contrast with the reduction in inequality after incorporating recent gains in longevity. The paper computes a full' income measure to value the life expectancy gains experienced by 49 countries between 1965 and 1995. Countries starting with lower income tended to grow more in terms of full' income than countries starting with higher income. The average growth rate of full' income is about 140% for developed countries, compared to 192% for developing countries. Additionally, we decompose changes in life expectancy into changes attributable to thirteen broad groups of causes of death. Infectious, respiratory and digestive diseases, congenital and perinatal conditions, and ill-defined' conditions are responsible for most of the mortality convergence observed between 1965 and 1995.

Suggested Citation

Becker, Gary S. and Philipson, Tomas J. and Soares, Rodrigo R., The Quantity and Quality of Life and the Evolution of World Inequality (June 2003). NBER Working Paper No. w9765, Available at SSRN: https://ssrn.com/abstract=414263

Gary S. Becker (Contact Author)

University of Chicago - Department of Economics ( email )

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University of Chicago - Booth School of Business

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Tomas J. Philipson

University of Chicago ( email )

Graduate School of Business
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National Bureau of Economic Research (NBER)

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Rodrigo R. Soares

Columbia University - School of International & Public Affairs (SIPA) ( email )

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Brazil

IZA Institute of Labor Economics

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Bonn, D-53072
Germany

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