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

32 Pages Posted: 13 May 2002

See all articles by Jörg Baten

Jörg Baten

University of Tuebingen - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute); Centre for Economic Policy Research (CEPR)

Date Written: March 2002

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 Classification: I12, I32, N33

Suggested Citation

Baten, Jorg, Did Partial Globalization Increase Inequality? Did Inequality Stimulate Globalization Backlash? The Case of the Latin American Periphery, 1950-80 (March 2002). CESifo Working Paper Series No. 683. Available at SSRN: https://ssrn.com/abstract=306282

Jorg Baten (Contact Author)

University of Tuebingen - Department of Economics ( email )

Mohlstrasse 36
D-72074 Tuebingen, 72074
Germany
+49 7071 2972985 (Phone)
+49 7071 295119 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

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