World Inequality Report (WIR) 2026

Prelims Plus 5 min
Prelims Plus 5 min
Current Affairs Analysis 5 min
Prelims Plus 5 min
Prelims Plus 5 min
Current Affairs Analysis 5 min

World Inequality Report (wir) 2026

View December 2025 Crrent Affairs

Context

  • World Inequality Report 2026 released in December 2025.
  • Published by World Inequality Lab (WIL), housed at the Paris School of Economics.
  • It is the 3rd edition of the report (after WIR 2018 and WIR 2022).
  • Provides a comprehensive assessment of income, wealth, gender, and climate inequality at global and country levels.

Core Focus Areas

  • Income inequality
  • Wealth inequality
  • Gender inequality
  • Climate-related inequality
  • Distributional impact of growth models

India-Specific Findings

Income Inequality

  • Top 10% of earners capture 58% of India’s total income.
  • Bottom 50% receive only 15% of total income.
  • Indicates a shrinking middle-income group, with gains concentrated at the top.

Wealth Inequality

  • Top 10% own about 65% of total wealth.
  • Top 1% alone hold nearly 40% of total wealth.
  • Wealth concentration is sharper than income concentration, reflecting asset-based inequality.

Income & Wealth Levels (India)

  • Average per capita income: €6,200 (PPP-adjusted).
  • Average wealth per adult: €28,000.
  • Highlights divergence between average growth figures and distributional outcomes.

Gender Inequality (India)

  • Women earn only 18% of total labour income.
  • Female labour force participation is below the global average.
  • Reflects structural barriers such as unpaid care work, informality, and limited access to formal employment.

Global Inequality Highlights

Income & Wealth Concentration

  • Top 10% globally earn more than the bottom 90% combined.
  • Top 10% own about 75% of global wealth.
  • Bottom 50% own only 2% of global wealth, showing extreme asset concentration.

Climate Inequality

Emission Responsibility

  • Poorest 50%:

o3% of private capital emissions

o10% of consumption-based emissions

  • Richest 10%:

o77% of private capital emissions

o47% of consumption-based emissions

  • Top 1% alone:

oResponsible for 41% of private capital emissions

oEmit nearly twice as much as the bottom 90% combined

  • Establishes a strong link between wealth concentration and climate crisis.

Gender Inequality – Global Picture

Labour Income Share

  • Women receive just over 25% of global labour income.

Regional Distribution of Women’s Labour Income

  • Middle East & North Africa (MENA): 16%
  • South & Southeast Asia: 20%
  • Sub-Saharan Africa: 28%
  • East Asia: 34%
  • Europe, North America & Oceania: 40%
  • Russia & Central Asia: 40%

Earnings Gap

  • Women earn:

o32% of men’s hourly earnings (including unpaid work)

o61% of men’s earnings when unpaid work is excluded

  • Highlights undervaluation of unpaid and care work
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