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Globalization and Inter-occupational Inequality in a Panel of Countries: 1983-2003

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  • Munshi, Farzana

    ()
    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

How does globalization affect inter-occupational wage inequality within countries? This paper empirically examines this issue by focusing on two dimensions of globalization, openness to trade and openness to capital, using a relatively new dataset on occupational wages. Estimates from dynamic models for 52 countries for the 1983-2002 period suggest that openness to trade contributes to an increase in occupational wage inequality within developed countries, but that the effect diminishes with an increased level of development. In the context of developing countries, the results suggest that the effect of openness to trade on wage inequality is insignificant and does not vary with the level of development. Our results also suggest that openness to capital does not affect occupational wage inequality in either developed or developing countries.

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File URL: http://hdl.handle.net/2077/10025
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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 302.

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Length: 33 pages
Date of creation: 23 Apr 2008
Date of revision:
Handle: RePEc:hhs:gunwpe:0302

Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Related research

Keywords: openness to trade; openness to capital; foreign direct investment; occupational wage inequality; panel data; dynamic model;

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