Why is Income Inequality Increasing in the Developed World?

Roser, Max and Crespo Cuaresma, Jesus (2016) Why is Income Inequality Increasing in the Developed World? Review of Income and Wealth, 62 (1). pp. 1-27. ISSN 00346586

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Abstract

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 labour unions affect inequality dynamics robustly.

Item Type:	Article
Additional Information:	This is the peer reviewed version of the following article: Roser, M. and Cuaresma, J. C. (2014), Why is Income Inequality Increasing in the Developed World?. Review of Income and Wealth, which has been published in final form at http://dx.doi.org/10.1111/roiw.12153. This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.
Keywords:	Inequality / international trade / FDI / globalization / institutions
Classification Codes:	JEL D63, I24, F10
Divisions:	Departments > Volkswirtschaft > Makroökonomie Forschungsinstitute > Human Capital and Development Kompetenzzentren > Nachhaltigkeit
Version of the Document:	Accepted for Publication
Variance from Published Version:	Minor
Depositing User:	Elena Simukovic
Date Deposited:	06 May 2015 09:08
Last Modified:	31 Dec 2016 00:54
Related URLs:	Publisher
FIDES Link:	https://bach.wu.ac.at/d/research/results/68541/
URI:	https://bach-s59.wu.ac.at/id/eprint/4529

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