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Does the broad spectrum of inequality across the world in the current era of neo-liberal globalization reflect a wide diversity of fundamentals, or just a multiplicity of political settlements and market failures?

Working Paper #304

Gabriel Palma

Paper  2.72mb pdf

The main aim of this paper is to analyze why inequality is so unequal in the current era of neo-liberal globalization. That is, why is it that there is such a broad spectrum of inequality across countries? This will include the analysis of whether this type of globalization has broadened even further the diversity in within-nation distribution of income by exacerbating “distributional failures” around the world. I first examine what I identify to be the five main distributional stylized facts of the current spectrum of inequality across the world, and then I propose a new way of measuring inequality, closely related to the index I suggested in Palma (2011), which was later christened as the “Palma ratio” by Alex Cobham and Andy Sumner.

About the Author

Gabriel Palma
University Lecturer
University of Cambridge

Publication Information

Type Working Paper
Program -
Posted 01/12/18
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