Our Methodology
Wealth Perspective combines real-world data with analytical frameworks to provide insights into global wealth distribution. Explore our data sources, calculation methods, and the analytical approach that powers your position assessment.
Where Our Data Comes From
🌍 World Bank
The World Bank collects income data from over 100 countries. They're like the world's economic accountant, tracking how much people earn in different nations.
📊 World Inequality Database
This database is run by economists who study wealth gaps. It provides detailed information about how income is distributed within and between countries.
🏛️ OECD Statistics
The Organization for Economic Cooperation and Development (OECD) collects reliable economic data from developed countries, helping us understand income patterns in wealthier nations.
How Percentile Estimation Works
🎯 What is a Percentile?
A percentile tells you what percentage of people earn less than you. If you're in the 75th percentile, you earn more than 75% of people worldwide.
📊 How We Create the Global Income Picture
Think of it like arranging all 8 billion people in a line from poorest to richest. We use data from our sources to figure out where different income levels fall in that line.
🔢 The Simple Math Behind It
We use income "checkpoints" based on real data:
- $2/day = Bottom 10% (extreme poverty)
- $10/day = Bottom 45% (lower income)
- $30/day = Bottom 75% (global middle class)
- $100/day = Bottom 92% (affluent)
- $500/day = Bottom 98% (very wealthy)
📈 Finding Your Exact Position
When you enter your income, we find which two checkpoints you're between. Then we calculate your exact position using simple math - like finding where you stand between two marked points on a ruler.
Example:
If you earn $5,000 per year, you're between the $3,650 (45%) and $10,950 (75%) checkpoints. We calculate that you're approximately in the 60th percentile.
💰 Making Fair Comparisons
We adjust for cost of living differences between countries. $1,000 buys much more in some countries than others, so we use "purchasing power parity" to make comparisons fair.
Things to Keep in Mind
📅 Data Changes Over Time
Our data is like a snapshot in time. The world changes quickly - pandemics, economic crises, and new policies can shift income patterns. Think of our estimates as a good guide, not perfect predictions.
� One Size Doesn't Fit All
$50,000 means very different things in New York versus Nairobi. We try to adjust for these differences, but local costs of living can vary dramatically even within countries.
� Income vs. Wealth
We look at yearly income, not total wealth. Someone might have low income but significant savings, or high income but lots of debt. We're measuring cash flow, not total financial picture.
📊 Some Places Are Hard to Count
Getting accurate income data from every country is challenging. Some regions have limited statistical resources, which means our global picture might miss some local variations.
How Accurate Are Our Estimates?
✅ We Double-Check Our Work
We compare our results with major organizations like the World Bank and OECD to make sure our numbers line up with their global poverty and income studies.
🎯 Pretty Close!
For most incomes, our estimates are accurate within 2-3 percentage points. We're most accurate for middle-income ranges where we have the most data.
Keeping Our Data Fresh
📅 Annual Updates
We review and update our numbers each year to include the latest data. When major world events happen (like pandemics or economic crises), we update more frequently.
📝 Transparent Changes
We keep track of all updates and methodology changes. If we improve our calculations, we document exactly what we changed and why.
Try the Calculator
Now that you understand our methodology, use our Wealth Perspective calculator to see where you fit in the global income distribution.
Calculate Your Position