Working Paper: NBER ID: w12885
Authors: Pinelopi Koujianou Goldberg; Nina Pavcnik
Abstract: We discuss recent empirical research on how globalization has affected income inequality in developing countries. We begin with a discussion of conceptual issues regarding the measurement of globalization and inequality. Next, we present empirical evidence on the evolution of globalization and inequality in several developing countries during the 1980s and 1990s. We then examine the channels through which globalization may have affected inequality discussing theory and evidence in parellel. We conclude with directions for future research.
Keywords: No keywords provided
JEL Codes: F10; F16
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Changes in a country's exposure to international trade and world markets (F69) | Distribution of resources within that country (D30) |
| Globalization (F60) | Wage inequality (J31) |
| Trade liberalization episodes (F13) | Rising inequality (D31) |
| Increase in wage inequality (J31) | Skill premium (J24) |
| Globalization (F60) | Changes in labor income (J39) |
| Globalization (F60) | Changes in relative prices (E31) |
| Globalization (F60) | Household production decisions (D13) |