Rise of Global Middle class ● Globalization gain are not equal ○ Not evenly distributed ● Horizontal inequality graph ○ Some people gained more(global rich) ○ Top 1% had largest income between 88-08 ○ Middle Class als did show a gain ○ Lower income individuals in High income country kept declining in income ● Rising global middle class - stagnant working class ● Gain in real income by percentile ○ Elephant curve ■ High gain for global middle income and high income 1% ■ No gain for lower income in rich countries Where do Global income distribution come? ● No global household survey were done ● 120 household survey has been used to estimate the income ○ Study on income not the wealth ■ Does not include… ● House property ● Stock exchanges ● Potential dept ○ World Bank ○ Luxembourg income ○ OECD income distribution database ● Therefore, this study has limitation ○ Top income reports are way underreported ■ high income are mostly made up of stock, property ■ Missing or misreported ○ Survey excludes top 1% ○ Forbes riche list and tax records are used ■ Adjust underreported top income Income= per capita household income With adjustment for PPP ● Survey might be underreport ○ Household surveys ■ Self Reported income: inaccurate unrecord earnings ○ Income source ■ Employment, self-employments ■ Government transfers. ● PPP adjustment ○ Income are comparable ■ Different cost of living