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Inequality in emerging countries

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  • Nathalie Chusseau

    (EQUIPPE, University of Lille 1, France)

  • Joel Hellier

    ()
    (EQUIPPE, Univ. of Lille 1, and LEMNA, Univ. of Nantes , France)

Abstract

We review the theoretical and empirical economic literature upon income inequality in emerging countries. We firstly describe the main observed developments and show that these are rather diverse across countries and developing regions. We subsequently expose the main theoretical mechanisms. We make a distinction between the traditional approaches (Kuznets, Lewis, Stolper-Samuelson) and the new explanations. In the latter, globalization and globalization-driven technological changes are at the core of the analyses. Both approaches bring out several opposite mechanisms. Finally, the empirical estimates display rather conflicting results. Most cross-country studies find a weak impact of globalization on income inequality. In contrast, several longitudinal studies concerning countries taken separately or small groups of countries reveal a positive correlation between openness and the relative demand for skill and inequality. These apparently conflicting findings reflect the opposite mechanisms linked to globalisation and the differences in countries’ experiences.

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File URL: http://www.ecineq.org/milano/WP/ECINEQ2012-256.pdf
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Bibliographic Info

Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 256.

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Length: 28 pages
Date of creation: May 2012
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2012-256

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Keywords: : Development; emerging countries; globalization; inequality; technology. Classification-JEL: E24; F43; O11; O15.;

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Cited by:
  1. Nathalie Chusseau & Joel Hellier, 2012. "Education, Intergenerational Mobility and Inequality," Working Papers 261, ECINEQ, Society for the Study of Economic Inequality.
  2. Joël Hellier, 2012. "North-South Globalization and Inequality," Working Papers 273, ECINEQ, Society for the Study of Economic Inequality.
  3. Nathalie Chusseau & Joël Hellier, 2012. "Globalization and Inequality: Where do we stand?," Working Papers 279, ECINEQ, Society for the Study of Economic Inequality.
  4. Joël Hellier, 2012. "The North-South HOS Model, inequality and globalization," Working Papers 244, ECINEQ, Society for the Study of Economic Inequality.

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