“Divergence in relative productivity levels and living standards is the dominant feature of modern economic history.” In particular, this article documents that, between 1870 and 1990, incomes in the developing world fell far behind those of the developed world in both relative and absolute terms. This finding emerges from an examination of each group of countries separately, then together. However, the larger group of less developed countries is far from homogeneous; marked differences in income growth can be found within it as well as in comparison to those that have “arrived.”
