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Financial globalization and wage inequality

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  • Jiancai Pi
  • Kaiqi Zhang
  • Xiangyu Huang

Abstract

This paper analyzes how financial globalization affects skilled‐unskilled wage inequality. We treat financial globalization as more regions being integrated into the global financial market. We find that a higher degree of financial globalization will decrease skilled‐unskilled wage inequality if it induces a small increase in the capital tax rate. However, a higher degree of financial globalization will increase skilled‐unskilled wage inequality if it induces a big increase in the capital tax rate.

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  • Jiancai Pi & Kaiqi Zhang & Xiangyu Huang, 2023. "Financial globalization and wage inequality," Scottish Journal of Political Economy, Scottish Economic Society, vol. 70(2), pages 144-157, May.
    • Handle: RePEc:bla:scotjp:v:70:y:2023:i:2:p:144-157
    DOI: 10.1111/sjpe.12333
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