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GLOBALIZAITON AND INEQUALITY: IS THERE A CAUSAL LINK? I38050 YIN Chao Ran
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Does globalization cause inequality across countries? Does globalization cause inequality within a country? Two Questions
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across countries
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Globalization contributed to narrowing the gap ( new management practices, technological know-how, and access to the world market-----boosting productivity) Traditional standard of distinguishing North- South does not apply (rapid growth of emerging markets----China, India, Brazil)
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within a country
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Within a country Widening gap in both advanced countries and emerging markets different driving factors
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within a country
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Two relevant factors: skill premium, technology progress Skill premium: technology biased Technology progress: requires high skill
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within a country How globalization affects inequality? FDI Technology progress Demand for high skill workers Widened gap
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within a country What to do ? Education: Increase skills Enable workers to match their skills
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Background within a country Conclusion Effects of globalization: in conjunction with other factors---technology and skills Investigation of Micro-level necessary
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Thank You
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