Has Globalization Increased Inequality?

21 Pages Posted: 14 Jul 2008

See all articles by Axel Dreher

Axel Dreher

Heidelberg University

Noel Gaston

University of South Australia


There is no shortage of theories that purport to explain why globalization may have adverse, insignificant, or even beneficial effects on income and earnings inequality. Surprisingly, the empirical realities remain an almost complete mystery. In this paper, we use data on industrial wage inequality, household income inequality as well as measures of the economic, social and political dimensions of globalization to examine this controversial issue. Overall, while we find that globalization has exacerbated inequality; this is particularly true in the case of income inequality in OECD countries.

Suggested Citation

Dreher, Axel and Gaston, Noel, Has Globalization Increased Inequality?. Review of International Economics, Vol. 16, No. 3, pp. 516-536, August 2008. Available at SSRN: https://ssrn.com/abstract=1158799 or http://dx.doi.org/10.1111/j.1467-9396.2008.00743.x

Axel Dreher (Contact Author)

Heidelberg University ( email )

Grabengasse 1
Heidelberg, 69117

HOME PAGE: http://www.axel-dreher.de

Noel Gaston

University of South Australia ( email )

37-44 North Terrace
Adelaide SA 5000, South Australia 5001

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