Globalization and Income Inequality
15 Pages Posted: 28 Nov 2017 Last revised: 18 Jan 2021
Date Written: November 24, 2017
The deterioration of income inequality is frequently to be found among the suggested negative side-effects of globalization – ‘the rich get richer, and the poor get poorer’.
How relevant is this perception? In my opinion, the question can be properly answered only after:
1) a careful overview of the dynamics of poverty at the global level, and
2) objective analyses of the changes at the various dimensions of income inequality.
It is those two fields that form the basis of the research carried out in this paper, and its results suggest that associating globalization only with growing inequality is an oversimplification of the issue. Furthermore, the selective analyses of globalization’s effects – limited to a particular country or population group – are likely to result in misleading conclusions, as globalization is a multi-faceted process that entails both positive and negative effects on income inequality.
Keywords: D31, E24, F60, F66, I31, I32, O15
JEL Classification: D31, E24, F60, F66, I31, I32, O15
Suggested Citation: Suggested Citation