Effects of Globalization on Income Inequality in High Income Countries Craig Bradford Abstract: This paper examines the relationship between technology, trade liberalization, and financial globalization in incomes inequality, focusing on high income countries. We find that technological progress has a smaller effect on income inequality in high income countries than in middle and low income countries. It is also found that increases in the percentage of workers in the services industry decreases Income Inequality by a significant amount. The GINI index is used to measure the level of income inequality, and the Chinn-Ito index is used to measure the level of openness to capital investment.
JEL Classification: O33, F16, J31, G18, F41
Keywords: GINI, Technology, Trade, Financial Globalization
Department of economics, Bryant University, 1150 Douglas pike, Smithfield, RI 02917. Phone (603) 547 0459 email: cbradfor@bryant.edu
Thanks to Professor Ramesh Mohan for your wisdom and guidance
Empirical Economic Bulletin, Spring 2009, Vol. 2
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