Income inequality describes how unevenly income is shared among people. Some inequality reflects differences in age, effort or skill, but very high inequality tends to mean that where someone is born, and to whom, largely decides what they will earn. The World Bank counts a country as highly unequal when its Gini index is above 40. By that measure the picture has improved: of 169 economies with data, 72 were highly unequal in 1995 and 43 in 2024. Yet the concentration at the very top is far greater than household surveys suggest. Estimates that add tax records and national accounts find that the richest tenth of the world's people earn more than the other nine-tenths combined, and that the poorer half receives less than a tenth of global income.
High inequality is concentrated in Latin America and the Caribbean and in sub-Saharan Africa, especially Southern Africa. Gaps between countries remain wide as well: average income per person in North America and Oceania is about thirteen times that in sub-Saharan Africa. Inequality matters beyond fairness. In more unequal countries a given amount of economic growth lifts fewer people out of poverty, and there is evidence that high inequality can slow growth itself, limit social mobility and leave large groups without the education and health care they need to improve their lives.