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Globalizing Inequality: ‘Centrifugal’ and ‘Centripetal’ Forces at Work

José Gabriel Palma ()

Working Papers from eSocialSciences

Abstract: Th is paper reassesses national income inequalities in this era of globalization. Th e main conclusion is that two opposite forces are at work: one ‘centrifugal’ at the two extremes of the distribution increasing the disparity of income shares appropriated by the top and by the bottom four deciles across countries; and the other ‘centripetal’ in the middle increasing the uniformity of the share of income going to deciles 5 to 9. Therefore, globalization is creating a situation where virtually all the intercountry diversity of income distribution is the result of differences in what the rich and the poor get in each country.

Keywords: inequality; economic reform; poverty; globalization; incentives (search for similar items in EconPapers)
Date: 2015-07
Note: Institutional Papers
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