Globalization and earnings inequality in metropolitan areas: evidence from the USA

Michael Wallace, Gordon Gauchat and Andrew S. Fullerton

Cambridge Journal of Regions, Economy and Society, 2011, vol. 5, issue 3, 377-396

Abstract: This study examines how the dynamics of the global economy, particularly new patterns of capital ownership, affect earnings inequality in the 276 US metropolitan areas and how these patterns vary across the USA between the south and non-south. We examine the impact of five measures of globalization (global capital, foreign direct investment, exports, foreign-born non-citizens and foreign-born citizens) and four measures of labour market transformation (deindustrialization, corporate restructuring, bureaucratic burden and casualization) on two distinct dimensions of metropolitan-level earnings inequality: upper-tail and lower-tail inequality. We find significant effects of these nine measures on inequality and important variations in their effects in southern and non-southern metropolitan areas. Copyright 2011, Oxford University Press.

Date: 2011
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Cambridge Journal of Regions, Economy and Society is currently edited by Judith Clifton, Anna Davies, Betsy Donald, Emil Evenhuis, Stefania Fiorentino (Associate Editor), Harry Garretsen, Meric Gertler, Amy Glasmeier, Mia Gray, Robert Hassink, Dieter Kogler, Michael Kitson, Linda Lobao, Charles van Marrewijk, Ron Martin, Peter Sunley, Peter Tyler and Chun Yang

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