Publicação
Determinants of global income inequality: concerns and evidence about the neoliberal paradigm
| Resumo: | This paper analyses the main drivers of global income inequality while testing some of the most relevant economic theories on inequality evolution. We run xed e ects regressions on four di erent income inequality measures, using a panel of 157 countries, for the period 1960-2015. We nd evidence that, while labor market reforms and unemployment were two upturning drivers of inequality, governments have an important rebalancing role, despite their decreased size. Furthermore, al- though social and political globalization reduced inequality, overall globalization and the widening of nancial systems increased inequality. These ndings suggest that the 1980s transition from post-war regulated capitalism to neoliberal capitalism led to a worldwide upsurge of inequality within countries. The e ect of liberalization on inequality is con rmed when we perform a causal analysis using the European Eastern Bloc transition of the 1990s as a quasi-experiment. |
|---|---|
| Autores principais: | Mergulhão, Alexandre Prazeres |
| Assunto: | Income inequality Inequality extraction ratio Augmented kuznet´s curve Country fixed effects Difference-in-differences |
| Ano: | 2017 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade Nova de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório Institucional da UNL |
| Resumo: | This paper analyses the main drivers of global income inequality while testing some of the most relevant economic theories on inequality evolution. We run xed e ects regressions on four di erent income inequality measures, using a panel of 157 countries, for the period 1960-2015. We nd evidence that, while labor market reforms and unemployment were two upturning drivers of inequality, governments have an important rebalancing role, despite their decreased size. Furthermore, al- though social and political globalization reduced inequality, overall globalization and the widening of nancial systems increased inequality. These ndings suggest that the 1980s transition from post-war regulated capitalism to neoliberal capitalism led to a worldwide upsurge of inequality within countries. The e ect of liberalization on inequality is con rmed when we perform a causal analysis using the European Eastern Bloc transition of the 1990s as a quasi-experiment. |
|---|