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By:Anthony James Roberts
Published on 2015 by

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The precipitous growth of income inequality in developed and developing countries over the last thirty years has raised concerns amongst the general public, policy-makers, and academic communities about issues of economic equity in contemporary society. As a result, a voluminous literature on the causes and consequences of income inequality has emerged across the social sciences. Despite this proliferation of research, the literature is mired in an ongoing debate over the proximate and distal drivers of inequality. One of the most contentious topics in this debate is the role of globalization. According to the globalization thesis, international trade and investment increases income inequality are primarily responsible for the recent growth of income inequality. Critics of this perspective show the effect of globalization on income inequality is inconsistent across studies and argue the reform of national labor market institutions is the main process behind the recent growth of income inequality.

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