The Effects of Globalization on World Income Inequality

This book aims (1) to investigate whether globalization increased the income inequality in the world, (2) to analyze the between country income inequality, and, (3) to observe whether an improvement in the distribution of income between rich and poor countries was achieved. The estimations of combined cross-section times-series regressions using two inequality measures as dependent variables are presented in the book. First, Theil''s T statistic of industrial pay inequality is employed. The second measure is estimated household income inequality. The KOF index of globalization is used in measuring the level of globalization. Balanced panel data analysis covers the period 1970-1998 for 33 countries. Between country Theil measures are calculated for 152 countries to capture the presence of an inverted-U Kuznets curve effect for the 1970-2003 period.