The world-wide rise of within inequality, globalization, and technology INTERNATIONAL ECONOMICS advanced Massimo Tamberi Inequality Source: IMF WEO Oct. 2007 Source: Cornia, Addison, Kiiski (2003), Income distribution changes and their impact in the post-war II period, UNU WIDER discussion paper 2003/28 Source: Cornia, Addison, Kiiski (2003), Income distribution changes and their impact in the post-war II period, UNU WIDER discussion paper 2003/28 Source: Cornia, Addison, Kiiski (2003), Income distribution changes and their impact in the post-war II period, UNU WIDER discussion paper 2003/28 Source: Cornia, Addison, Kiiski (2003), Income distribution changes and their impact in the post-war II period, UNU WIDER discussion paper 2003/28 Most observations on the main diagonal or on its right Source: Cornia, Addison, Kiiski (2003), Income distribution changes and their impact in the post-war II period, UNU WIDER discussion paper 2003/28 Source: Cornia, Addison, Kiiski (2003), Income distribution changes and their impact in the post-war II period, UNU WIDER discussion paper 2003/28 Source: Cornia, Addison, Kiiski (2003), Income distribution changes and their impact in the post-war II period, UNU WIDER discussion paper 2003/28 Source: Piketty Saez (2003), Income inequality in the United States, 19131998, QJE US economy Piketty (2005), WB . Source: Piketty Saez (2003), Income inequality in the United States, 19131998, QJE US economy Source: Piketty Saez (2003), Income inequality in the United States, 19131998, QJE US economy Source: Piketty Saez (2003), Income inequality in the United States, 19131998, QJE Source: Piketty Saez (2003), Income inequality in the United States, 19131998, QJE US economy income of the rich = capital income income of the poor = labor income Source: Piketty Saez (2003), Income inequality in the United States, 19131998, QJE US economy Income of the rich = mainly labor income Piketty (2005) . Globalization and technology Source: IMF WEO Oct. 2007 Source: Krugman (2008), Trade and wages, reconsidered, Princeton University Inequality and the labor market Source: Feenstra, Hanson, (2001), Global production sharing and rising inequality: a survey of trade and wages, Davis University Source: Deardorff (1998), Technology, trade, and increasing inequality: does the cause matter for the cure? Michigan University Source: Deardorff (1998), Technology, trade, and increasing inequality: does the cause matter for the cure Michigan University Source: Deardorff (1998), Technology, trade, and increasing inequality: does the cause matter for the cure? Michigan University Source: Feenstra, Hanson, (2001), Global production sharing and rising inequality: a survey of trade and wages, Davis University Source: Deardorff (1998), Technology, trade, and increasing inequality: does the cause matter for the cure? Michigan University US economy Source: Deardorff (1998), Technology, trade, and increasing inequality: does the cause matter for the cure Michigan University Shares of Employment by Education Level, USA Is technology the cause? A first approach Source: Deardorff (1998), Technology, trade, and increasing inequality: does the cause matter for the cure Michigan University Source: Krugman (2008), Trade and wages, reconsidered, Princeton University A second point of view: increasing competition from developing countries Average (% of USA) USA: import penetration Source: Krugman (2008), Trade and wages, reconsidered, Princeton University In search of the culprit: Globalization or technology? A global estimate: globalization + technology Jaumotte, Lall, Papageorgiou (2008). Rising Income Inequality: Technology, or Trade and Financial Globalization?, IMF wp 08/185...but see next page Jaumotte, Lall, Papageorgiou (..) Rising Income Inequality: Technology, or Trade and Financial Globalization?, IMF wp 08/185 Is it because of technology? in summary Source IMF Jaumotte Same contribution Source IMF Jaumotte Kuznets explanation? INEQUALITY RISE AND ITS CONSEQUENCES ON ECONOMIC GROWTH Source: Cornia, Addison, Kiiski (2003), Income distribution changes and their impact in the post-war II period, UNU WIDER discussion paper 2003/28 Source: Cornia, Addison, Kiiski (2003), Income distribution changes and their impact in the post-war II period, UNU WIDER discussion paper 2003/28