Did Partial Globalization Increase Inequality? Did Inequality Stimulate Globalization Backlash? The case of the Latin American Periphery, 1950-80

Abstract:     
Inequality is an important threat to the globalization of the world economy. This contribution uses a new measure of inequality: height inequality. It covers, for the 1950-80 period, not only wage recipients, but also the self-employed, the unemployed, housewives, children, and other groups who may not be participating in a market economy. It turns out that within-country inequality is higher in periods of greater openness.

We also find that inequality leads to a "globalization backlash". The closing of commodity and capital markets has always taken place during inequality peaks or 5-10 years afterwards.

Keywords: Inequality, Globalization, Anthropometrics

JEL Classifications: I12, I32, N33

Working Paper Series