Globalization and Income Inequality: A European Perspective

17 Pages Posted: 23 Aug 2007

See all articles by Thomas Harjes

Thomas Harjes

International Monetary Fund (IMF)

Date Written: July 2007


There is growing concern in Europe over the impact of globalization on high and evenly shared living standards. These concerns have often surfaced in response to falling labor income shares in aggregate national income data. However, these data may tell little about the underlying distribution of incomes based on household disposable incomes. While summary measures of income distributions also suggest that inequality has increased in most industrialized countries, this development was very uneven and much less pronounced in euro-area countries, suggesting that broad phenomena such as trade liberalization and technological change may not be major drivers of inequality.

Keywords: Working Paper, Globalization, Europe, Income distribution, National income accounts

Suggested Citation

Harjes, Thomas, Globalization and Income Inequality: A European Perspective (July 2007). IMF Working Paper No. 07/169, Available at SSRN:

Thomas Harjes (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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