The Impact of Liberalisation and Globalisation on Within-country Income Inequality

Giovanni Cornia

CESifo Economic Studies, 2003, vol. 49, issue 4, 581-616

Abstract: The paper reviews changes in within-country income inequality over the last forty years, with particular attention to the years of 1980–2000, against the background of the inequality shifts intervened during the globalisation of 1870–1914. Withincountry inequality appears to have risen to different extents in two thirds of the 73 countries analysed, overturning in several cases prior trends towards lower inequality. For the majority of the countries analysed, the paper rejects the hypotheses that such rise is due to a worsening of the traditional causes of inequality, such as high land concentration and inequality in education, or to technological changes. Most of the recent surge in income polarisation would appear to be related to the policy drive towards domestic deregulation and external liberalisation, though the specific impact of each policy instrument appear to vary considerably. (JEL D31, F02)

Date: 2003
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