Did Partial Globalization Increase Inequality? The Case of the Latin American Periphery, 1950–2000

Joerg Baten and Uwe Fraunholz

CESifo Economic Studies, 2004, vol. 50, issue 1, 45-84

Abstract: Inequality is an important threat to the globalization of the world economy that we experience today. This contribution uses the coefficient of height variation as a measure of inequality. This indicator covers not only wage recipients, but also the selfemployed, the unemployed, housewives, children, and other groups who may not participate in a market economy, for the period 1950–79, for which income inequality data is mostly unavailable or inconsistent. It turns out that within-country inequality is higher in time periods of greater openness. This result is confirmed for the time period 1950–2000, and a much broader model. (JEL I12, I32, N33)

Date: 2004
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