Visualizing Global Income Distribution Over 200 Years
Has the world become more unequal?
With COVID-19 disrupting societies and lower-income countries in particular, social and economic progress made over the last decade is in danger of being reversed. And with rising living costs and inflation across much of the world, experts warn that global income inequality has been exacerbated.
But the good news is that absolute incomes across many poorer countries have significantly risen over the last century of time. And though work remains, poverty levels have fallen dramatically in spite of stark inequality.
To analyze historical trends in global income distribution, this infographic from Our World in Data looks at three periods over the last two centuries. It uses economic data from 1800, 1975, and 2015 compiled by Hans and Ola Rosling.
For global income estimates, data was gathered by country across three key variables:
- GDP per capita
- Gini coefficient, which measures income inequality by statistical distribution
Daily incomes were measured in a hypothetical “international-$” currency, equal to what a U.S. dollar would buy in America in 2011, to allow for comparable incomes across time periods and countries.
Historical Patterns in Global Income Distribution
In 1800, over 80% of the world lived in what we consider extreme poverty today.
At the time, only a small number of countries—predominantly Western European countries, Australia, Canada and the U.S.—saw meaningful economic growth. In fact, research suggests that between 1 CE and 1800 CE the majority of places around the world saw miniscule economic growth (only 0.04% annually).
By 1975, global income distribution became bimodal. Most citizens in developing countries lived below the poverty line, while most in developed countries lived above it, with incomes nearly 10 times higher on average. Post-WWII growth was unusually rapid across developed countries.
Fast forward just 40 years to 2015 and world income distribution changed again. As incomes rose faster in poorer countries than developed ones, many people were lifted out of poverty. Between 1975 and 2015, poverty declined faster than at any other time. Still, steep inequality persisted.
A Tale of Different Economic Outputs
Even as global income distribution has started to even out, economic output has trended in the opposite direction.
As the above interactive chart shows, GDP per capita was much more equal across regions in the 19th century, when it sat around $1,100 per capita on a global basis. Despite many people living below the poverty line during these times, the world also had less wealth to go around.
Today, the global average GDP per capita sits at close to $15,212 or about 14 times higher, but it is not as equally distributed.
At the highest end of the spectrum are Western and European countries. Strong economic growth, greater industrial output, and sufficient legal institutions have helped underpin higher GDP per capita numbers. Meanwhile, countries with the lowest average incomes have not seen the same levels of growth.
This highlights that poverty, and economic prosperity, is heavily influenced by where one lives.
This article was published as a part of Visual Capitalist's Creator Program, which features data-driven visuals from some of our favorite Creators around the world.
The Biggest Tech Talent Hubs in the U.S. and Canada
6.5 million skilled tech workers currently work in the U.S. and Canada. Here we look at the largest tech hubs across the two countries
The Biggest Tech Talent Hubs in the U.S. and Canada
The tech workforce just keeps growing. In fact, there are now an estimated 6.5 million tech workers between the U.S. and Canada — 5.5 million of which work in the United States.
This infographic draws from a report by CBRE to determine which tech talent markets in the U.S. and Canada are the largest. The data looks at total workforce in the sector, as well as the change in tech worker population over time in various cities.
The report also classifies which metro areas and regions can rightly be considered tech hubs in the first place, by looking at a variety of factors including cost of living, average educational attainment, and tech employment levels as a share of different industries.
The Top Tech Hubs in the U.S.
Silicon Valley, in California’s Bay Area, remains the most prominent (and expensive) U.S. tech hub, with a talent pool of nearly 380,000 tech workers.
Here’s a look at the top tech talent markets in the country in terms of total worker population:
|🇺🇸 Market||Total Tech Talent||% Talent Growth (2016-2021)|
|SF Bay Area||378,870||13%|
|New York Metro||344,520||3%|
|Salt Lake City||55,930||29%|
America’s large, coastal cities still contain the lion’s share of tech talent, but mid-sized tech hubs like Salt Lake City, Portland, and Denver have put up strong growth numbers in recent years. Seattle, which is home to both Amazon and Microsoft, posted an impressive 32% growth rate over the last five years.
Emerging tech hubs include areas like Raleigh-Durham. The two cities have nearly 70,000 employed tech workers and a strong talent pipeline, seeing a 28% increase in degree completions in fields like Math/Statistics and Computer Engineering year-over-year to 2020. In fact, the entire state of North Carolina is becoming an increasingly attractive business hub.
Houston was the one city on this list that had a negative growth rate, at -2%.
The Top Tech Hubs in Canada
Tech giants like Google, Meta, and Amazon are continuously and aggressively growing their presence in Canada, further solidifying the country’s status as the next big destination for tech talent. Here are the country’s four tech hubs with a total worker population of more than 50,000:
|🇨🇦 Market||Total Tech Talent||% Talent Growth (2016-2021)|
Toronto saw the most absolute growth tech positions in 2021, adding 88,900 jobs. The tech sector in Canada’s largest city has seen a lot of momentum in recent years, and is now ranked by CBRE as North America’s #3 tech hub, after the SF Bay Area and New York City.
Vancouver’s tech talent population increased the most from its original figure, climbing 63%. Seattle-based companies like Microsoft and Amazon have established sizable offices in the city, adding to the already thriving tech scene. Furthermore, Google is set to build a submarine high-speed fiber optic cable connecting Canada to Asia, with a terminus in Vancouver.
Not to be left behind, Ottawa has also taken giant strides to increase their tech talent and stamp their presence. The country’s capital even has the highest concentration of tech employment in its workforce, thanks in part to the success of Shopify.
The small, but well-known tech hub of Waterloo also had a very high concentration on tech employment (9.6%). The region has seen its tech workforce grow by 8% over the past five years.
Six out of the top 10 cities by tech workforce concentration are located in Canada.
Evolution of Tech Hubs
The post-COVID era has seen a shifting definition of what a tech hub means. It’s clear that remote work is here to stay, and as workers migrate to chase affordability and comfort, traditional tech hubs are seeing some decline — or at least slower growth — in their population of tech workers.
While it isn’t evident that there is a mass exodus of tech talent from traditional coastal hubs, the rise in high-paying tech jobs in smaller markets across the country could point to a trend and is positive for the industry.
While more workers with great talent, resources, and education continue to opt for cost-friendly places to reside and work remotely, will newer markets like Charlotte, Tennessee, and Calgary see a rise of tech companies, or will large corporations and startups alike continue to opt for the larger cities on the coast?
The Inflation Factor: How Rising Food and Energy Prices Impact the Economy
From rising inflation to food insecurity, we show why energy price shocks have far-reaching effects on the global economy.
How Rising Food and Energy Prices Impact the Economy
Since Russia’s invasion of Ukraine, the effects of energy supply disruptions are cascading across everything from food prices to electricity to consumer sentiment.
In response to soaring prices, many OECD countries are tapping into their strategic petroleum reserves. In fact, since March, the U.S. has sold a record one million barrels of oil per day from these reserves. This, among other factors, has led gasoline prices to fall more recently—yet deficits could follow into 2023, causing prices to increase.
With data from the World Bank, the above infographic charts energy shocks over the last half century and what this means for the global economy looking ahead.
Energy Price Shocks Since 1979
How does today’s energy price shock compare to previous spikes in real terms?
|U.S.$/bbl Equivalent||Crude Oil||Natural Gas||Coal|
As the above table shows, the annual price of crude oil is forecasted to average $93 per barrel equivalent in 2022. By comparison, during the 2008 and 1979 price shocks, crude oil averaged $127 and $119 per barrel, respectively.
What distinguishes the 2022 energy spike is that prices have soared across all fuels. Where price shocks were more or less isolated in the past, many countries such as Germany and the Netherlands are looking to coal to make up for oil supply disruptions. Meanwhile, European natural gas prices have hit record highs.
Food prices have also spiked. Driven by higher input costs across fuel, chemicals, and fertilizer, agriculture commodity prices are forecasted to rise 18% in 2022. Fertilizer prices alone could increase 70% in part due to Russia’s dominance of the global fertilizer market—exporting more than any country worldwide.
What are 3 Ripple Effects of Rising Energy Prices?
Oil feeds into nearly everything, from food to smartphones. In fact, the price of oil influences as much as 64% of food price movements.
How could energy and food shocks affect the world economy in the near future, and why is a lot riding on the price of oil?
1. Rising Global Inflation
In 2022, inflation became a global phenomenon—impacting 100% of advanced countries and 87% of emerging markets and developing economies analyzed by the World Bank.
|Countries With Inflation Above Target||2019||2020||2021||Apr 2022|
|Emerging Markets and Developing Economies||20%||20%||55%||87%|
Sample includes 31 emerging markets and developing economies and 12 advanced economies
By contrast, roughly two-thirds of advanced economies and just over half of emerging markets experienced inflation above target in 2021.
This has contributed to tighter monetary conditions. The table below shows how rising inflation in the U.S. has corresponded with interest rate hikes since the 1980s:
|Date||Core CPI at Beginning of Cycle||Magnitude of Rate Hikes
Over Course of Tightening Cycle
2023 is an estimate based on market expectations of the level of the Fed Funds rate in mid-2023. U.S. Core CPI for 2023 based on latest data available.
In many cases, when the U.S. has rapidly tightened monetary policy in response to price pressures, emerging markets and developing economies have experienced financial crises amid higher borrowing costs.
2. Slower Global Growth
Energy price shocks could add greater headwinds to global growth prospects:
|Global Growth Scenarios||2021||2022||2023|
|Including Fed tightening||2.6%||2.4%|
|Including Energy price spike||2.2%||1.6%|
|Including China COVID-19||2.1%||1.5%|
Together, price spikes, hawkish monetary policy, and COVID-19 lockdowns in China could negatively impact global growth.
3. Rising Food Insecurity and Social Unrest
Even before the energy price shock of 2022, global food insecurity was increasing due to COVID-19 and mounting inflationary pressures.
|Number of People in Acute Food Insecurity||2020||2021|
|Middle East and North Africa||30M||32M|
|Latin America and the Caribbean||12M||13M|
Sustained food shortages and high food prices could send millions into acute food insecurity.
In addition, high fuel and food prices are often correlated with mass protests, political violence, and riots. While Sri Lanka and Peru have already begun to see heightened riots, Turkey and Egypt are also at risk for social unrest as the cost of living accelerates and food insecurity worsens.
Since World War II, oil price shocks have been a major constraint on economic growth. As the war in Ukraine continues, the outlook for today’s energy market is far from clear as a number of geopolitical factors could sway oil price movements and its corresponding effects.
Money4 weeks ago
Mapped: The Wealthiest Billionaire in Each U.S. State in 2022
Money3 weeks ago
Charting the Relationship Between Wealth and Happiness, by Country
Money2 weeks ago
Mapped: The World’s Billionaire Population, by Country
Money3 weeks ago
Mapped: A Snapshot of Wealth in Africa
Water2 weeks ago
Mapped: Countries With the Highest Flood Risk
Markets4 weeks ago
Ranked: The Most Popular Fast Food Brands in America
Politics1 week ago
Mapped: Which Countries Still Have a Monarchy?
Markets5 days ago
The Biggest Tech Talent Hubs in the U.S. and Canada