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We examine trends in intercountry income inequality during the period 1960–1995. Our database is a sample of 133 countries from the Penn World Tables and our measure of inequality is the Theil index. We find that intercountry income inequality remained roughly constant during the period under study. Our main contribution to the existing literature is to divide the sample into North – developed countries – and South – developing countries. We find that North–South inequality remained more or less constant. Intra–North inequality also did not change much while intra–South inequality increased, then declined.