Recent data indicate a wide disparity in the growth performance of different nations. Such disparities have usually been taken to imply that there is to much catching up or convergence taking place. Using a modified version of the endogenous growth approach, we show that convergence is occurring but in a non-equalizing manner. The world appears to be segmented into two mutually exclusive "convergence clubs" with the members of the richer club enjoying a real income per capita which is significantly higher than that enjoyed by those belonging to the poorer club. Copyright 1992 by Oxford University Press.