Income Distribution Measurement and Regulation in the Globalized World

Abstract

Income inequality is one of the key issues of contemporary economic development in the majority of countries. Some scholars even add it to the list of the four major macroeconomic indicators. Current trends in world economic development indicate that inequality across countries is deepening. Statistics shows that distribution of both income and resources among countries is extremely unequal. However, so far no one has elaborated an optimal approach to the assessment of global inequality. Moreover, specialists have not agreed yet on what should be taken as indicators of income inequality: income, expenditures, resources or opportunities,
in their broad sense.
Hence, the research is aimed to assess the level of income polarization on global scale through analysis of a series of relevant studies. In terms of methodology, the author applies to statistical analysis, as well as graphic and regression analyses. Based on results it has been concluded that capital does not move in the same direction as people do. It implies that world economic growth is not inclusive, meaning not all countries have access and opportunity to use economic resources. In this regard, the research findings show that the level of interstate
polarization exceeds that within states, which leads to deeper social economic gap between groups of countries, thus gives less opportunities for ones and more opportunities for others.
From theoretical perspective, ongoing tendencies of world economy development create challenges, namely the task to look for new ways of assessment and regulation of global income distribution.