Globalization and Inequality §

Class: IS403 Created Time: December 24, 2021 2:20 PM Database: Class Notes Database Last Edited Time: December 24, 2021 3:04 PM Type: Reading Notes

1. How does globalization contribute to equality (among states and among individuals)? Briefly explain by giving at least THREE reasons. (1&3)
2. How does globalization contribute to inequality (among states and among individuals)? Briefly explain by giving at least THREE reasons. (2&4)

20-30 minutes

each group share

Intra-State Inequality §

• Intra-state inequality has been going up. Income gap in each groups of society is getting bigger.
• wage dispersion can fall at the same time as income dispersion between workers rises if there is higher unemployment and a reduction in working hours
• Why?
  • Strong Technological Development in developed countries
  • strong regional growth of some major developing countries
    • China and India: growth unevenly between coastal manufacturing regions vs inalnd rural areas
  • Collapse of communism & difficult transition to democracy
  • Demographic trends
  • Unequal development in education
  • Opening-up economies tend to increase inequality in developed countries with a higher proportion of skilled workers