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Globalization and Inequality Past and Present

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Jeffrey G. Williamson

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Abstract

The late 19th and the late 20th century shared more than simply globalization and convergence. Globalization also seems to have had the same impact on income distribution: in the late 19th century, inequality rose in rich countries and fell in poor countries; according to Adrian Wood, the same has been true of the late 20th century. Furthermore, while George Borjas and Wood think that globalization accounted for something like a third to a half of the rise in inequality in America and other OECD countries since the 1970s, the late 19th century evidence suggests at least the same, perhaps more. However, those modern economists who favor a rising inequality explanation coming from (unskilled)-labor-saving technological change will be pleased to hear that it probably accounted for more than a third of the rising inequality in the New World and for more than a half of the falling inequality in Europe. It also appears that the inequality trends which globalization produced prior to World War I were at least partly responsible for the interwar retreat from globalization. Will the world economy of the next century also retreat from its commitment to globalization because of its inequality side effects?

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5491.

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Date of creation: Mar 1996
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Handle: RePEc:nbr:nberwo:5491

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  1. Williamson, Jeffrey G, 1998. "Globalization, Labor Markets and Policy Backlash in the Past," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 51-72, Fall. [Downloadable!] (restricted)
  2. K. H. O'Rourke, 2001. "Globalization and Inequality: Historical Trends," CEG Working Papers 20015, Trinity College Dublin, Department of Economics. [Downloadable!]
    Other versions:
  3. Kévin H. O’Rourke & Richard Sinnott, 2004. "Flux migratoires : économie politique de la migration et enjeux empiriques," Revue d’économie du développement, De Boeck Université, vol. 18(3), pages 45-76. [Downloadable!]
  4. Enriqueta Camps, 2009. "Globalization and Culture Shaping the Gender Gap: A Comparative Analysis of Urban Latin America and East Asia (1970 - 2000)," Economics Working Papers 1145, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
  5. Ali Abdel Gadir Ali, . "Globalization and Inequality in the Arab Region," API-Working Paper Series 0307, Arab Planning Institute - Kuwait, Information Center. [Downloadable!]
  6. Clemens, Michael A. & Montenegro, Claudio E. & Pritchett, Lant, 2008. "The place premium : wage differences for identical workers across the US border," Policy Research Working Paper Series 4671, The World Bank. [Downloadable!]
    Other versions:
  7. Michael Huberman & Wayne Lewchuk, 2002. "European Economic Integration and the Labour Compact, 1850-1913," CIRANO Working Papers 2002s-34, CIRANO. [Downloadable!]
    Other versions:
  8. Kevin H. O'Rourke & Jeffrey G. Williamson, 2000. "When Did Globalization Begin?," NBER Working Papers 7632, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  9. Lanzona, Leonardo, 2007. "The Determination of Contracts in Agricultural Economies," Discussion Papers DP 2007-23, Philippine Institute for Development Studies. [Downloadable!]
  10. Luis Bertola & Maria Camou & Silvana Maubrigades & Natalia Melgar, 2008. "Human development and inequality in the 20th Century : the Mercosur countries in a comparative perspective," Working Papers in Economic History wp08-06, Universidad Carlos III, Departamento de Historia Económica e Instituciones. [Downloadable!]
  11. Kevin H. O'Rourke, & Richard Sinnott, 2003. "Migration flows: Political Economy of Migration and the Empirical Challenges," The Institute for International Integration Studies Discussion Paper Series iiisdp06, IIIS. [Downloadable!]
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  12. Matthew Higgins & Jeffrey G. Williamson, 1999. "Explaining inequality the world round: cohort size, Kuznets curves, and openness," Staff Reports 79, Federal Reserve Bank of New York. [Downloadable!]
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  13. Morley, Samuel A., 2001. "Distribution and growth in Latin America in an era of structural reform," TMD discussion papers 66, International Food Policy Research Institute (IFPRI). [Downloadable!]
  14. Peter H. Lindert & Jeffrey G. Williamson, 2002. "Mondialisation et inégalité : une longue histoire," Revue d’économie du développement, De Boeck Université, vol. 16(1), pages 7-41. [Downloadable!]
  15. Bigsten, Arne & Durevall, Dick, 2004. "Trade Reform and Wage Inequality in Kenya, 1964-2000," Working Papers in Economics 148, Göteborg University, Department of Economics. [Downloadable!]
  16. Jeffrey G. Williamson, 2000. "Land, Labor and Globalization in the Pre-Industrial Third World," NBER Working Papers 7784, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  17. Kevin O'Rourke, 2004. "The Era of Free Migration: Lessons for Today," The Institute for International Integration Studies Discussion Paper Series iiisdp018, IIIS. [Downloadable!]
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