TY - JOUR T1 - Why is Income Inequality Increasing in the Developed World? JF - Review of Income and Wealth Y1 - 2014 A1 - Max Roser A1 - Jesus Crespo Cuaresma KW - FDI KW - globalization KW - income inequality KW - inequality KW - international trade AB -

We address empirically the factors affecting the dynamics of income inequality among industrialized economies. Using a panel for 32 developed countries spanning the last four decades, our results indicate that the predictions of the Stolper–Samuelson theorem concerning the effects of international trade on income inequality find support in the data if we concentrate on imports from developing countries as a trade measure, as theory would imply. We find that democratization, the interaction of technology and education, and changes in the relative power of labor unions affect inequality dynamics robustly.

VL - Article first published online: 14 NOV 2014 L2 - eng UR - http://www.emod.ox.ac.uk/sites/emod.ox.ac.uk/files/CrespoCuaresmaRoser_Submitted.pdf ER -