Has globalisation increased inequality?

Date of this Version


Document Type

Journal Article

Publication Details

Dreher, A. and Gaston, N. (2008) Has globalisation increased inequality? Review of International Economics. Vol. 16, No. 3, pp 516-536.

2008 HERDC Submission.

FoR Code: 1402.

Access the Journal homepage.

Copyright © Wiley Blackwell, 2008.

[GDC Working Paper Series; No. 1, Apr. 2007]


There is 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 realitites 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. Overall, while we find that globalisation has exacerbated inequality; this is particularly true in the case of income inequality in OECD countries.



This document has been peer reviewed.