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Comparing past and present wage inequality in two globalisation periods

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  • Concha Betr�n
  • Maria A. Pons

Abstract

This paper compares past and present globalisation with an aim to highlighting the different factors that drove wage inequality then and those which are doing so now. We have constructed a ratio of wage inequality for 15 countries in the first period of globalisation (1870-1913) and the subsequent period of deglobalisation (1914-1930) and then compare this pattern to wage inequality in the 1980s and 1990s. We propose that the difference in wage inequality trends for the two globalisation periods is due to migration and institutional factors (education and labour market institutions). These factors offset the increase in wage inequality produced by globalisation and technological change in the past, but do not appear to be acting in the present.

Suggested Citation

  • Concha Betr�n & Maria A. Pons, 2013. "Comparing past and present wage inequality in two globalisation periods," Scandinavian Economic History Review, Taylor & Francis Journals, vol. 61(2), pages 140-166, June.
    • Handle: RePEc:taf:sehrxx:v:61:y:2013:i:2:p:140-166
    DOI: 10.1080/03585522.2013.784212
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    1. Timothy J. Hatton & Jeffrey G. Williamson, 2002. "What Fundamentals Drive World Migration?," NBER Working Papers 9159, National Bureau of Economic Research, Inc.
    2. Robert A. Margo, 1999. "The History of Wage Inequality in America, 1820 to 1970," Economics Working Paper Archive wp_286, Levy Economics Institute.
    3. Lindley, Joanne & Machin, Stephen, 2011. "Rising wage inequality and postgraduate education," LSE Research Online Documents on Economics 121738, London School of Economics and Political Science, LSE Library.
    4. Hatton, Timothy J. & Williamson, Jeffrey G., 1998. "The Age of Mass Migration: Causes and Economic Impact," OUP Catalogue, Oxford University Press, number 9780195116519.
    5. Tony Atkinson, 2002. "Top Incomes in the United Kingdom Over the Twentieth Century," Oxford Economic and Social History Working Papers _043, University of Oxford, Department of Economics.
    6. Tony Atkinson, 2002. "Top Incomes in the United Kingdom Over the Twentieth Century," Economics Series Working Papers 2002-W43, University of Oxford, Department of Economics.
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    Cited by:

    1. Giovanni Federico & Alessandro Nuvolari & Leonardo Ridolfi & Michelangelo Vasta, 2021. "The race between the snail and the tortoise: skill premium and early industrialization in Italy (1861–1913)," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 15(1), pages 1-42, January.
    2. Ribeiro, Ana Paula & Carvalho, Vitor & Ferreira, Mariana, 2020. "The effect of globalization on wage inequality: an application to the European Union before the Great Recession," MPRA Paper 110697, University Library of Munich, Germany.
    3. Rogozin, Dmitriy (Рогозин, Дмитрий), 2018. "Field Interviewer Profession [Профессия Полевой Интервьюер]," Working Papers 051809, Russian Presidential Academy of National Economy and Public Administration.

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