Has Globalisation Increased Inequality?

There has been no shortage of theories which purport to explain why globalisation may have, adverse, insignificant or even beneficial effects on income and earnings inequality. Surprisingly, the empirical realities remain an almost complete mystery. In this paper we use data on industrial wage inequality, household income inequality as well as measures of the economic, social and political dimensions of globalisation to examine this controversial issue. We find that the economic dimension of globalisation, and – less robustly – political integration, have exacerbated wage inequality in developed countries. In contrast, the impact of globalisation on both income and earnings inequality in less-developed countries has been negligible

Wage Differentials in Brazil: Theory and Evidence

The investigation of wage determination and wage differentials in developing countries has concentrated on the effects of human capital and different sources of segmentation associated with institutional arrangements and structural characteristics on earnings. In this article, we use micro-data for Brazil for the 1980s and 1990s to test several competitive theories, and models with segmentation explained by efficiency wages. We find that unmeasured abilities and efficiency wage models seem to play a role in wage determination, while compensating differentials and transitory difference theories were found to be irrelevant to wages formation.wage determination, wage differentials, human capital, institutional arrangements, structural characteristics, Brazil,