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Globalisation and Inequality: Where do we stand?

Author

Listed:
  • Nathalie Chusseau

    (Lille 1 University)

  • Joël Hellier

    (Université de Lille Nord-de-France)

Abstract

Both developed and developing countries have experienced a huge globalization of their economies and an increase in within-country income inequality. We survey the literature on the globalization-inequality relationship. The extension of the North-South Heckscher-Ohlin-Samuelson (HOS) approach by relaxing certain simplifying assumptions makes it possible to generate most of the observed facts. Production segmentation and offshoring increase inequality in developed and developing countries. Firm heterogeneity generates intra-skill group inequality. Globalization causes changes in technologies and in institutions that can foster inequality. Most of these mechanisms combine globalization with technological or/and institutional changes, which reconcile the three major explanations for the rise in inequality.

Suggested Citation

  • Nathalie Chusseau & Joël Hellier, 2012. "Globalisation and Inequality: Where do we stand?," Journal of Income Distribution, Ad libros publications inc., vol. 21(3-4), pages 7-34, November.
    • Handle: RePEc:jid:journl:y:2012:v:21:i:3-4:p:7-34
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    Cited by:

    1. Joël Hellier, 2019. "Phases of Globalization, Wages and Inequality," Open Economies Review, Springer, vol. 30(5), pages 905-931, November.
    2. Darío Judzik & Luc�a Trujillo & Soledad Villafa�e, 2017. "A tale of two decades: Income inequality and public policy in Argentina (1996-2014)," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 36(72).
    3. Facundo Alvaredo & Leonardo Gasparini, 2013. "Recent Trends in Inequality and Poverty in Developing Countries," CEDLAS, Working Papers 0151, CEDLAS, Universidad Nacional de La Plata.
    4. Joël Hellier, 2012. "North-South Globalization and Inequality," Working Papers 273, ECINEQ, Society for the Study of Economic Inequality.
    5. Joel Hellier & Ekaterina Kalugina, 2015. "Globalization and the working poor," Working Papers 355, ECINEQ, Society for the Study of Economic Inequality.

    More about this item

    Keywords

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    JEL classification:

    • D3 - Microeconomics - - Distribution
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • F1 - International Economics - - Trade
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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