Summary of Globalization and Income Inequality Revisited

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The connection between globalization and income inequality has ignited populist furor around the world, as attested by the Brexit vote in the United Kingdom and the election of Donald Trump as US president. In this rigorous report, economists Florian Dorn, Clemens Fuest and Niklas Potrafke present their findings on how globalization works within countries to affect incomes. Their paper adds new knowledge to the growing body of economic inquiry into this important topic. getAbstract suggests this probing and technical analysis to professionals and policy experts.

About the Authors

Florian DornClemens Fuest and Niklas Potrafke are economists at the ifo Institute at the University of Munich.



Economists, policy makers and commentators continue to engage in intense debate about the merits of globalization, a controversy that began with studies conducted in the 1990s. On the one hand, globalization has facilitated income growth and convergence among countries. But at the same time, it has widened perceived inequality within nations and fomented populist rage in several Western countries. Many individuals in the advanced economies have lost jobs and are frustrated about their prospects.

Globalization spread briskly from the late 1980s...

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