Global Income Polarization: Relative and AbsolutePerspectives

Global Income Polarization: Relative and AbsolutePerspectives | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Global Income Polarization: Relative and AbsolutePerspectives Vanesa Jorda, Miguel Niño-Zarazúa, Laurence Roope, Finn Tarp This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-6438933/v1 This work is licensed under a CC BY 4.0 License Status: Published Journal Publication published 30 Apr, 2026 Read the published version in The Journal of Economic Inequality → Version 1 posted 10 You are reading this latest preprint version Abstract This paper presents the first estimates of global and regional income polarizationtrends from 1960 to 2020. Our analysis relies on bipolarization indices and a polarizationmeasure (DER) that accounts for multiple poles in the income distribution.We employ both relative and absolute indexes, introducing a parametrization ofthe DER index that is simultaneously scale- and translation-invariant. Our findingsshow that while relative polarization has unambiguously declined since the 1980s,absolute polarization continues to rise, except at higher parameter values. Thesecontrasting trends are robust across various data selection methods and adjustmentsfor non-response among top incomes. Regionally, absolute polarization has increasedin North America and East Asia but decreased in Europe and Central Asia. Evidenceon inequality perceptions suggests that individuals often perceive polarizationin absolute terms. Policymakers are therefore encouraged to consider both relativeand absolute perspectives when developing strategies to address the complex natureof polarization. JEL Classification: D63, C15, C46 Global income distribution bipolarization polarization Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Published Journal Publication published 30 Apr, 2026 Read the published version in The Journal of Economic Inequality → Version 1 posted Editorial decision: Revision requested 17 Sep, 2025 Reviews received at journal 17 Sep, 2025 Reviews received at journal 05 Aug, 2025 Reviewers agreed at journal 09 Jun, 2025 Reviewers agreed at journal 05 Jun, 2025 Reviewers agreed at journal 05 Jun, 2025 Reviewers invited by journal 05 Jun, 2025 Editor assigned by journal 14 Apr, 2025 Submission checks completed at journal 14 Apr, 2025 First submitted to journal 13 Apr, 2025 You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. 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Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-6438933","acceptedTermsAndConditions":true,"allowDirectSubmit":false,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":442915294,"identity":"5ceb93bc-c1b2-487f-a3bc-14762a163fb6","order_by":0,"name":"Vanesa Jorda","email":"","orcid":"","institution":"University of Cantabria","correspondingAuthor":false,"prefix":"","firstName":"Vanesa","middleName":"","lastName":"Jorda","suffix":""},{"id":442915295,"identity":"81eff327-82ef-4717-ad9e-ee8d7783a0fa","order_by":1,"name":"Miguel Niño-Zarazúa","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAArklEQVRIiWNgGAWjYFAC9oMPPiB4CcRo4Uk2nEGiFgYzaR6StOjObkiTtvljIy/fwPzwA2NbGhFW3Dl42Dq3Lc1wwwE2YwnGthwitNxISLyd23CYcQOQzcDYVkGUFgNpiz+H7ec3sH8jWouRNAPb4cSGAzwgW4hyWE6yYW9bWvKGwzzFEgnniPH+jfSDD378sbGd396+8cOHsmTCWhCAmYHYiBwFo2AUjIJRQBAAAIa2OEIZLDTtAAAAAElFTkSuQmCC","orcid":"","institution":"SOAS University of London","correspondingAuthor":true,"prefix":"","firstName":"Miguel","middleName":"","lastName":"Niño-Zarazúa","suffix":""},{"id":442915296,"identity":"cac38ae0-b7eb-4ca6-8226-dfd81ce20c85","order_by":2,"name":"Laurence Roope","email":"","orcid":"","institution":"University of Oxford","correspondingAuthor":false,"prefix":"","firstName":"Laurence","middleName":"","lastName":"Roope","suffix":""},{"id":442915298,"identity":"65d74dee-0ad7-4bd4-8add-a3d3b324554c","order_by":3,"name":"Finn Tarp","email":"","orcid":"","institution":"University of Copenhagen","correspondingAuthor":false,"prefix":"","firstName":"Finn","middleName":"","lastName":"Tarp","suffix":""}],"badges":[],"createdAt":"2025-04-13 11:38:12","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-6438933/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-6438933/v1","draftVersion":[],"editorialEvents":[{"content":"https://doi.org/10.1007/s10888-026-09729-5","type":"published","date":"2026-04-30T15:58:31+00:00"}],"editorialNote":"","failedWorkflow":false,"files":[{"id":108437807,"identity":"0481e560-b0d2-47ee-9a92-c6f18a119ad4","added_by":"auto","created_at":"2026-05-04 16:03:41","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":718340,"visible":true,"origin":"","legend":"","description":"","filename":"main.pdf","url":"https://assets-eu.researchsquare.com/files/rs-6438933/v1_covered_001ab9ce-b014-45bd-a3dd-22a8c568b334.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"Global Income Polarization: Relative and AbsolutePerspectives","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":true,"hideJournal":false,"highlight":"","institution":"","isAcceptedByJournal":true,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"the-journal-of-economic-inequality","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":false,"externalIdentity":"joei","sideBox":"Learn more about [The Journal of Economic Inequality](http://link.springer.com/journal/10888)","snPcode":"10888","submissionUrl":"https://submission.nature.com/new-submission/10888/3","title":"The Journal of Economic Inequality","twitterHandle":"","acdcEnabled":true,"dfaEnabled":true,"editorialSystem":"em","reportingPortfolio":"Springer Hybrid","inReviewEnabled":true,"inReviewRevisionsEnabled":false},"keywords":"Global income distribution, bipolarization, polarization","lastPublishedDoi":"10.21203/rs.3.rs-6438933/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-6438933/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThis paper presents the first estimates of global and regional income polarizationtrends from 1960 to 2020. 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