3
$\begingroup$

How are wages distributed globally? Wages do not follow a normal distribution, do they? Is wealth distributed in the same way or differently?

$\endgroup$
  • $\begingroup$ Since wages cannot be negative, I would rather say that they follow a log-normal, truncated at the minimum (nominal) wages, or exponential maybe. I have no sources though. Also, if any answer does what you want, please consider ticking it as correct. A reputation of 1 is enough to do it. I remind you this because newcomers often forget to do so. See What should I do when someone answers my question? That being said, welcome on EC. $\endgroup$ – Kanak Jan 5 at 11:38
  • $\begingroup$ Related: economics.stackexchange.com/questions/13097/… $\endgroup$ – Henry Jan 5 at 23:13
4
$\begingroup$

Globally, there is Lakner and Milanovik (2015)'s elephant graph:

enter image description here


Hellebrandt and Mauro (2015)

enter image description here

Thus, the two previous distributions look like bimodal log-normal distributions.


or CDFs, as in MacAskill's book Doing Good Better

enter image description here


Did not find something strictly related to wages. For most of people, income may be a good proxy of wages.

$\endgroup$
  • 1
    $\begingroup$ I think it's fair to equate (gross) income to wages for the vast majority of the world population $\endgroup$ – E. Sommer Jan 5 at 17:28
2
$\begingroup$

Both distributions are often modelled log-normal, with a substantial number of zeros. A pareto distribution is also sometimes used (Piketty & Saez (2012), p.32) for modelling the distribution of top incomes. Wealth distributions are also in general far more skewed than wage (or income) distributions.

$\endgroup$

Your Answer

By clicking "Post Your Answer", you acknowledge that you have read our updated terms of service, privacy policy and cookie policy, and that your continued use of the website is subject to these policies.

Not the answer you're looking for? Browse other questions tagged or ask your own question.