Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/50823
Authors: 
Dreher, Axel
Gaston, Noel
Year of Publication: 
2006
Series/Report no.: 
Arbeitspapiere // Konjunkturforschungsstelle, Eidgenössische Technische Hochschule Zürich 140
Abstract: 
There has been no shortage of theories which purport to explain why globalisation may have, adverse, insignificant or even beneficial effects on income and earnings inequality. Surprisingly, the empirical realities remain an almost complete mystery. In this paper we use data on industrial wage inequality, household income inequality as well as measures of the economic, social and political dimensions of globalisation to examine this controversial issue. We find that the economic dimension of globalisation, and - less robustly - political integration, have exacerbated wage inequality in developed countries. In contrast, the impact of globalisation on both income and earnings inequality in less-developed countries has been negligible.
Subjects: 
Income and earnings inequality
globalisation
democracy
panel regressions
JEL: 
F02
D30
O57
C82
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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