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Growing income inequalities in advanced countries

Author

Listed:
  • Nathalie Chusseau

    () (EQUIPPE, University of Lille 1)

  • Michel Dumont

    () (Federal Planning Bureau Government of Belgium)

Abstract

In this paper, we survey the literature that studies the issue of growing inequalities in advanced countries (the North). We firstly unveil the main facts concerning widening inequality in the North and we underlie the differences between countries and groups of countries. We put forward the concomitance of the rise in inequality with three key developments that are the three major explanations given to growing inequality: globalization, skill biased technological progress and institutional changes. We finally expose the mechanisms behind each explanation and examine the results of the empirical works that attempt to appraise their respective impacts. The overall diagnosis is that the three explanations are valid but (i) their weight may substantially differ across countries and sectors, and (ii) they interact in the determination of inequality.

Suggested Citation

  • Nathalie Chusseau & Michel Dumont, 2012. "Growing income inequalities in advanced countries," Working Papers 260, ECINEQ, Society for the Study of Economic Inequality.
  • Handle: RePEc:inq:inqwps:ecineq2012-260
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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2012-260.pdf
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    Citations

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    Cited by:

    1. Nathalie Chusseau & Joël Hellier, 2012. "Globalisation and Inequality: Where do we stand?," Journal of Income Distribution, Journal of Income Distribution, vol. 21(3-4), pages 7-34, November.
    2. Nathalie Chusseau & Joel Hellier, 2012. "Education, Intergenerational Mobility and Inequality," Working Papers 261, ECINEQ, Society for the Study of Economic Inequality.
    3. Florina-Cristina Badarau & Florence Huart & Ibrahima Sangaré, 2013. "Indebtedness and macroeconomic imbalances in a monetary-union DSGE model," Working Papers hal-00996622, HAL.
    4. Thomas Beissinger & Nathalie Chusseau & Joel Hellier, 2014. "Offshoring, employment, labour market reform and inequality: Modelling the German experience," Working Papers 330, 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

    Income Inequality; Globalization; Skill Based Technological Change; Labour Market Institutions.;

    JEL classification:

    • 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
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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