Inequality Growth and Poverty in an Era of Liberalization and Globalization
Inequality Growth and Poverty in an Era of Liberalization and Globalization
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Abstract
Based on an extensive review of relevant literature and an econometric analysis of inequality indexes, this book provides the first systematic analysis of the changes in within‐country income inequality over the last 20 years. Within‐country income inequality has risen since the early 1980s in most of the OECD, in all transitional countries, and in many developing countries; more recently, inequality has also risen in India and nations affected by the Asian crisis. Altogether, over the last 20 years, inequality worsened in 70% of the 73 countries analysed in the book, with the Gini index rising by more than five points in half of them. Mainstream theory focussing on rises in wage differentials by skill caused by North–South trade, migration, or on technological change, poorly explains the recent rise in income inequality. Likewise, while the traditional causes of income polarization—landownership inequality (high land concentration), unequal access to education, the urban bias (rural–urban inequality), the ‘curse of natural resources’—still account for much of the cross‐country variation in income inequality, they too cannot explain its recent rise. The book suggests that the recent rise in income inequality was caused to a considerable extent by a policy‐driven worsening in factorial income distribution, wage spread, and spatial inequality; in this regard, it discusses the distributive impact of reforms in trade and financial liberalization, taxation, public expenditure, safety nets, and labour markets. The volume represents one of the first attempts to analyse systematically the relation between policy changes inspired by liberalization and globalization and income inequality. It suggests that capital account liberalization appears to have had on average the strongest disequalizing effect, followed by domestic financial liberalization, labour market deregulation, and tax reform. Trade liberalization had unclear effects, while public expenditure reform often had positive effects. The book is arranged in four parts: I, Income Distribution Trends, Theories and Policies (2 chapters); II, Traditional Causes of Inequality: Still Relevant for Explaining its Rise in the 1980s–90s? (3 chapters); III, Recent Factors Influencing the Distribution of Income (6 chapters); and IV. Country Case Studies (5 chapters on India, Venezuela, Turkey, South Africa, and Thailand).
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Front Matter
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PART I INCOME DISTRIBUTION TRENDS, THEORIES, AND POLICIES
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PART II TRADITIONAL CAUSES OF INEQUALITY: STILL RELEVANT FOR EXPLAINING ITS RISE IN THE 1980S AND THE 1990S?
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3
Landownership Inequality and the Income Distribution Consequences of Economic Growth
Michael Carter
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4
Does Educational Achievement Help Explain Income Inequality?
Daniele Checchi
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5
Rural and Urban Income Inequality and Poverty: Does Convergence between Sectors Offset Divergence within Them?
Robert Eastwood andMichael Lipton
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3
Landownership Inequality and the Income Distribution Consequences of Economic Growth
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PART III RECENT FACTORS INFLUENCING THE DISTRIBUTION OF INCOME
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6
Globalization, Technology, and Income Inequality: A Critical Analysis
Ajit Singh andRahul Dhumale
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7
External Liberalization, Economic Performance, and Distribution in Latin America and Elsewhere
Lance Taylor
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8
Labour Market Institutions and Income Inequality: What are the New Insights after the Washington Consensus?
Rolph van der Hoeven andCatherine Saget
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9
Increased Income Inequality in OECD Countries and the Redistributive Impact of the Government Budget
Anthony B. Atkinson
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10
Income Distribution and Tax and Government Social-Spending Policies in Developing Countries
Ke-young Chu and others
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11
The Impact of Adjustment-Related Social Funds on Income Distribution and Poverty
Giovanni Andrea Cornia andSanjay G. Reddy
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6
Globalization, Technology, and Income Inequality: A Critical Analysis
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PART IV COUNTRY CASE STUDIES
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12
Reducing Poverty and Inequality in India: Has Liberalization Helped?
Raghbendra Jha
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13
Factor Shares and Resource Booms: Accounting for the Evolution of Venezuelan Inequality
Francisco RodrÍguez
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14
The Impact of Financial Liberalization and the Rise of Financial Rents on Income Inequality: The Case of Turkey
A. Erinc Yeldan
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15
The Changing Nature of Inequality in South Africa
Carolyn Jenkins andLynne Thomas
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16
Growth, Structural Change, and Inequality: The Experience of Thailand
Isra Sarntisart
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12
Reducing Poverty and Inequality in India: Has Liberalization Helped?
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End Matter
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