Globalizing Inequality: ‘Centrifugal’ and ‘Centripetal’ Forces at Work
AbstractThis paper reassesses national income inequalities in this era of globalization. The main conclusion is that two opposite forces are at work: one ‘centrifugal’ at the two extremes of the distribution—increasing the disparity of income shares appropriated by the top and by the bottom four deciles across countries; and the other ‘centripetal’ in the middle—increasing the uniformity of the share of income going to deciles 5 to 9. Therefore, globalization is creating a situation where virtually all the intercountry diversity of income distribution is the result of differences in what the rich and the poor get in each country.
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Bibliographic InfoPaper provided by United Nations, Department of Economics and Social Affairs in its series Working Papers with number 35.
Length: 26 pages
Date of creation: Sep 2006
Date of revision:
economic development; structural change; comparative studies; development policy;
Find related papers by JEL classification:
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- F - International Economics
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
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