Economic Globalization and Increasing Earnings Inequality in Affluent Democracies

نویسنده

  • David Brady
چکیده

Purpose – Since the 1960s, the affluent democracies have experienced substantial changes in earnings inequality at the same time as heightening economic globalization. This paper investigates the relationship between these two processes. Methodology/Approach – I use fixed-effects models, and comprehensive measures of globalization and earnings inequality to scrutinize the relationship between the two in 18 affluent democracies. Although past studies concentrate on worker displacement, I examine how globalization affected earnings inequality before and after controlling for manufacturing employment and unemployment as indicators of displacement. Findings – Initial evidence suggests net migration and investment openness have moderate positive effects, but trade openness has larger, more significant positive effects. In full models, only trade openness remains robustly significant. For a standard deviation increase in trade Economic Sociology of Work Research in the Sociology of Work, Volume 18, 149–181 Copyright r 2009 by Emerald Group Publishing Limited All rights of reproduction in any form reserved ISSN: 0277-2833/doi:10.1108/S0277-2833(2009)0000018009

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تاریخ انتشار 2008