IDEAS home Printed from https://ideas.repec.org/a/taf/irapec/v24y2010i3p251-267.html
   My bibliography  Save this article

The systemic nature of the rise in inequality in developed economies

Author

Listed:
  • Pascal Petit

Abstract

The rise in inequality in the last two decades has affected most developed economies. The systemic nature of this inequality is the focus of this paper. A combination of product market internationalization, financial globalization and technological changes favoring large organizations created asymmetric pressure on the two ends of the distribution of market incomes, resulting in greatly increased inequality. A widespread credo of political liberalism prevented governments from using taxes and transfers to check this rise in income inequality. Changes in relative prices and borrowing facilities brought some support to the standards of living of low-income groups but also contributed to increased instability of these economies. The global financial crisis was one of the possible crisis scenarios that rising inequality was bound to produce. The paper assesses the cumulative factors behind the rise in inequality. These factors reduce the capacity of industrial economies to face the challenges of ever-changing environments.

Suggested Citation

  • Pascal Petit, 2010. "The systemic nature of the rise in inequality in developed economies," International Review of Applied Economics, Taylor & Francis Journals, vol. 24(3), pages 251-267.
  • Handle: RePEc:taf:irapec:v:24:y:2010:i:3:p:251-267
    DOI: 10.1080/02692171003701396
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/02692171003701396
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lucian Bebchuk, 2005. "The Growth of Executive Pay," Oxford Review of Economic Policy, Oxford University Press, vol. 21(2), pages 283-303, Summer.
    2. Fligstein, Neil & Shin, Taek-Jin, 2003. "The shareholder value society: A review of the changes in working conditions and inequality in the U.S., 1976-2000," Institute for Research on Labor and Employment, Working Paper Series qt0z85d717, Institute of Industrial Relations, UC Berkeley.
    3. Wynne Godley, 1999. "Seven Unsustainable Processes: Medium-Term Prospects and Policies for the United States and the World," Economics Strategic Analysis Archive 99-10, Levy Economics Institute.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Leena Kalliovirta & Tuomas Malinen, 2015. "Nonlinearity and cross-country dependence of income inequality," Working Papers 358, ECINEQ, Society for the Study of Economic Inequality.
    2. Cong S. Pham & Mehmet Ali Ulubaşoğlu, 2016. "The role of endowments, technology and size in international trade: new evidence from product-level data," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 25(7), pages 913-937, October.
    3. Paolo Ramazzotti, 2013. "Shared economic thought and the neglect of social costs. Why progressive economists often stick to conventional wisdom," Working Papers 71-2013, Macerata University, Department of Finance and Economic Sciences, revised Dec 2015.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:irapec:v:24:y:2010:i:3:p:251-267. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/CIRA20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.