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Globalisation and Inter-occupational Inequality: Empirical Evidence from OECD Countries

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  • Arne Bigsten
  • Farzana Munshi

Abstract

type="main" xml:id="twec12128-abs-0001"> How does globalisation affect inter-occupational wage inequality within countries? This paper examines this by focusing on two dimensions of globalisation: openness to trade and openness to capital flows, using a relatively new data set on occupational wages. Estimates from a dynamic model for 15 OECD countries spanning the period 1983–2003 suggest that increased openness increases occupational wage inequality in poorer OECD countries as predicted by the Heckscher–Ohlin–Samuelson model, but for the more advanced OECD countries, we find no significant effect. The absence of the expected result for the latter category can be due to a rapid increase in the supply of skilled labour, to outsourcing of skilled jobs or because changes in the trade flows are too small to have any significant effect in those countries.

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  • Arne Bigsten & Farzana Munshi, 2014. "Globalisation and Inter-occupational Inequality: Empirical Evidence from OECD Countries," The World Economy, Wiley Blackwell, vol. 37(3), pages 501-510, March.
    • Handle: RePEc:bla:worlde:v:37:y:2014:i:3:p:501-510
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    File URL: http://hdl.handle.net/10.1111/twec.2014.37.issue-3
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    Cited by:

    1. Philipp Heimberger, 2019. "Beeinflusst die ökonomische Globalisierung die Einkommensungleichheit? Eine Meta-Analyse," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 45(4), pages 497-529.
    2. Florian Dorn & Christoph Schinke, 2018. "Top income shares in OECD countries: The role of government ideology and globalisation," The World Economy, Wiley Blackwell, vol. 41(9), pages 2491-2527, September.
    3. Gülsün Yay & Hüseyin Taştan & Asuman Oktayer, 2016. "Globalization, Economic Freedom, and Wage Inequality: A Panel Data Analysis," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 63(5), pages 581-601, December.
    4. Christoph Schinke, 2014. "Government Ideology, Globalization, and Top Income Shares in OECD Countries," ifo Working Paper Series 181, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    5. Bruno Martorano & Donghyun Park & Marco Sanfilippo, 2017. "Catching-up, structural transformation, and inequality: industry-level evidence from Asia," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(4), pages 555-570.
    6. Onur Özdemir, 2020. "The handicap for enhanced solidarity across advanced economies: The greater the economic openness higher the unequal distribution of income," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(4), pages 585-632, December.
    7. Raquel Fonseca & Marie Mélanie Fontaine & Catherine Haeck, 2021. "Le lien entre les compétences en numératie et les rendements sur le marché du travail au Québec," CIRANO Project Reports 2021rp-11, CIRANO.

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