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	The world is extremely unequal by World Inequality Lab Report 2026   Dec. 2025   Inequality has long been a defining feature of the global economy, but by 2025, it has reached levels that demand urgent attention. The benefits of globalization and economic growth have flowed disproportionately to a small minority, while much of the world’s population still face difficulties in achieving stable livelihoods. These divides are not inevitable. They are the outcome of political and institutional choices.   This report draws on the World Inequality Database and new research to provide a comprehensive picture of inequality across income, wealth, gender, international finance, climate responsibility, taxation, and politics.   The findings are clear: inequality remains extreme and persistent; it manifests across multiple dimensions that intersect and reinforce one another; and it reshapes democracies, fragmenting coalitions and eroding political consensus. Yet the data also demonstrate that inequality can be reduced.   Policies such as redistributive transfers, progressive taxation, investment in human capital, and stronger labor rights have made a difference in some contexts. Proposals such as minimum wealth taxes on multi-millionaires illustrate the scale of resources that could be mobilized to finance education, health, and climate adaptation. Reducing inequality is not only about fairness but also essential for the resilience of economies, the stability of democracies, and the viability of our planet.   The first and most striking fact emerging from the data is that inequality remains at very high levels. Today, the top 10% of the global population’s income-earners earn more than the remaining 90%, while the poorest half of the global population captures less than 10% of the total global income. Wealth is even more concentrated: the top 10% own three-quarters of global wealth, while the bottom half holds only 2%.   The wealthiest 0.001% alone, fewer than 60,000 multi-millionaires, control today three times more wealth than half of humanity combined. This concentration is not only persistent, but it is also accelerating. Extreme wealth inequality is rapidly increasing. Since the 1990s, the wealth of billionaires and centi-millionaires has grown at approximately 8% annually, nearly twice the rate of growth experienced by the bottom half of the population.   Inequality is not only a question of income and wealth. It is also embedded in the structures of everyday life, shaping whose work is recognized, whose contributions are rewarded, and whose opportunities are constrained. Among the most persistent and pervasive divides is the gap between men and women.   Globally, women capture just over a quarter of total labor income, a share that has barely shifted since 1990. When analyzed by regions, in the Middle East & North Africa, women’s share is only 16%; in South & Southeast Asia it is 20%; in Sub-Saharan Africa, 28%; and in East Asia, 34%. Europe, North America & Oceania, as well as Russia & Central Asia, perform better, but women still capture only about 40% of labor income. Women continue to work more and earn less than men. Women work more hours than men, on average 53 hours per week compared to 43 for men, once domestic and care work is taken into account. Yet their work is consistently valued less.   Studying inequality across countries and over time reveals that policy can indeed reduce inequality. Progressive taxation and, especially, redistributive transfers can significantly reduce inequality. Taxation often fails where it is most needed: at the very top of the distribution. The ultra-rich escape taxation.   Effective income tax rates climb steadily for most of the population but fall sharply for billionaires and centi-millionaires. These elites pay proportionally less than most of the households that earn much lower incomes.   This regressive pattern deprives states of resources for essential investments in education, healthcare, and climate action. It also undermines fairness and social cohesion by decreasing trust in the tax system.   Progressive taxation is therefore crucial: it not only mobilizes revenues to finance public goods and reduce inequality, but also strengthens the legitimacy of fiscal systems by ensuring that those with the greatest means contribute their fair share.   Reducing inequality is a political choice. But fragmented electorates, underrepresentation of workers, and the outsized influence of wealth all work against the coalitions needed for reform. This reality can change. It reflects political choices about campaign finance rules, party strategies, and institutional design that can be reshaped with sufficient will. Inequality can be reduced. There are a range of policies that, in different ways, have proven effective in narrowing gaps.   One important avenue is through public investments in education and health. These are among the most powerful equalizers, yet access to these basic services remains uneven and stratified. Public investment in free, high-quality schools, universal healthcare, childcare, and nutrition programs can reduce early-life disparities and foster lifelong learning opportunities.   Another path is through redistributive programs. Cash transfers, pensions, unemployment benefits, and support for vulnerable households can directly shift resources from the top to the bottom of the distribution. Where well designed, such measures have narrowed income gaps, strengthened social cohesion, and provided buffers against shocks.   Progress can also come from advancing gender equality. Reducing gender gaps requires dismantling the structural barriers that shape how work is valued and distributed. Policies that recognize and redistribute unpaid care work, through affordable childcare, parental leave that includes fathers, and pension credits for caregivers, are essential to leveling the playing field. Equally important are the strict enforcement of equal pay and stronger protections against workplace discrimination. Addressing these imbalances ensures that opportunities and rewards are not determined by gender but by contribution and capability.   Tax policy is another powerful lever. Fairer tax systems, where those at the very top contribute at higher rates through progressive taxes, not only mobilize resources but also strengthen fiscal legitimacy. Even modest rates of a global minimum tax on billionaires and centi-millionaires could raise between 0.45% and 1.11% of global GDP and could finance transformative investments in education, healthcare, and climate adaptation.   Inequality can also be reduced by reforming the global financial system. Current arrangements allow advanced economies to borrow cheaply and secure steady inflows, while developing economies face costly liabilities and persistent outflows.   Inequality is a political choice. It is the result of our policies, institutions, and governance structures. The costs of escalating inequality are clear: widening divides, fragile democracies, and a climate crisis borne most heavily by those least responsible. But the possibilities of reform are equally clear. Where redistribution is strong, taxation is fair, and social investment is prioritized, inequality narrows.   The tools exist. The challenge is political will. The choices we make will determine whether the global economy continues down a path of extreme concentration or moves toward shared prosperity.   http://wir2026.wid.world/ http://wir2026.wid.world/insights/ http://wir2026.wid.world/insight/executive-summary http://wir2026.wid.world/medias/ http://www.theguardian.com/inequality/2025/dec/10/just-0001-hold-three-times-the-wealth-of-poorest-half-of-humanity-report-finds http://www.gov.za/sites/default/files/gcis_document/202511/g20-global-inequality-report-full-and-summary.pdf http://www.oxfamamerica.org/press/south-africa-puts-a-stern-test-to-g20-leaders-this-year-to-confront-the-scourge-of-global-inequality/ Visit the related web page
	Inequalities are the result of unequal distributions of power by Ellen Ehmke, Martina Ciravegna Robert Bosch Stiftung   Inequality is not only a question of the unequal distribution of income and wealth. In their paper The Fabric of Inequality – Dimensions, Causes, and Consequences, Ellen Ehmke and Martina Ciravegna break down the concept and make clear: privileged groups and institutions must take an active role in addressing inequalities.   Inequalities appear in various forms and dimensions, including the unequal distribution of wealth and political power as well as inequalities linked to attributes such as gender, ethnicity, or (dis)ability. These different inequalities are not isolated phenomena; they coexist, overlap, and reinforce one another.   Such overlaps and interactions are referred to as “the fabric of inequalities” or intersectionality. For example, a woman who is part of an ethnic minority and also has impaired hearing, experiences discrimination at multiple intersections.   For people in this position, more and more “threads” of inequality intertwine, creating a fabric that makes it difficult for them to live a self-determined life free from discrimination.   Social inequality makes society poorer as a whole   Structural inequalities in income and wealth as well as discrimination, prevent people from being able to realize their full potential. But the negative consequences of inequality go far beyond the individual level.   The extent of inequality we face today makes us poorer as a society because many talents remain undiscovered. Research shows that, across all social classes, people who perceive high levels of inequality report lower subjective wellbeing. In societies with high levels of inequality, health problems are more prevalent, crime rates are higher, and social cohesion declines. Inequality, thus, affects all members of society.   A high degree of inequality also undermines trust in democratic institutions and fuels political polarization. When people feel that the system is unfair and that they have no opportunities despite their efforts, this can boost support for populist parties.   In the end, inequality severely weakens our ability to work together as a society and to find fair, effective solutions to collective challenges such as climate change and poverty.   The paper also explores the historical roots of inequalities – such as the legacy of colonialism, the unequal use of natural resources, and unpaid care work. It sheds light on how the mechanisms that emerged from these conditions continue to have an impact today.   Given the serious social consequences of inequality, it is not only those directly affected who must take action. Privileged groups and institutions – those who do not personally experience disadvantages due to inequality – also bear responsibility.   Inequalities are the result of unequal distributions of power: not everyone has the same access to resources and decision-making. The task is to open up these avenues and share power.   This requires action on three levels: recognition, representation, and redistribution.   Recognition means valuing the knowledge and perspectives of groups that are currently excluded.   Representation requires ensuring that marginalized groups have a stronger voice in decision-making processes.   Redistribution is needed to provide fairer access to material and immaterial resources. By combining these approaches, deep systemic change can be achieved to effectively combat inequality.   http://www.bosch-stiftung.de/en/publication/fabric-inequalities http://www.bosch-stiftung.de/en/storys/justice Visit the related web page
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