Globalization and Income Inequality

The impacts of globalization on income (in) equality are analyzed from two perspectives. One is income equality between and among countries and the other is within a country. Using the results of the previous studies, this paper finds that globalization widened income gap between low-income and high-income countries, while it had mixed impacts on the within country income inequality among different types of countries. Globalization widened income gap in high income countries, while it reduced income gap in low income countries. The analysis found that availability of high skilled workers plays a key role in the determination of the impacts of globalization on income equality.