Globalization And Inequality

228 Pages·2018·0.83 MB·English

by  Elhanan Helpman

GLOBALIZATION
AND
INEQUALITY

GLOBALIZATION
AND
INEQUALITY
Elhanan Helpman
Cambridge,Massachusetts,andLondon,England 2018
Copyright(cid:2)c 2018bythePresidentandFellowsofHarvardCollege
Allrightsreserved
PrintedintheUnitedStatesofAmerica
Firstprinting
LibraryofCongressCataloging-in-PublicationData
Names:Helpman,Elhanan,author.
Title:Globalizationandinequality/ElhananHelpman.
Description:Cambridge,Massachusetts:HarvardUniversityPress,2018.|
Includesbibliographicalreferencesandindex.
Identifiers:LCCN2017060589|ISBN9780674984608(alk.paper)
Subjects:LCSH:Incomedistribution.|Globalization–Economicaspects.|
Technologicalinnovations–Economicaspects.
Classification:LCCHC79.I5H4542018|DDC339.2/2–dc23LCrecord
availableathttps://lccn.loc.gov/2017060589
Coverimage:“AroundtheWorld,”(cid:2)c JonathanNardi/500px(image#106603221)
Coverdesign:TimJones
ToElla

Contents
Preface ix
Introduction 1
1 HistoricalBackground 9
PART I THE TRADITIONAL APPROACH 21
2 TheRiseoftheCollegeWagePremium 23
3 EarlyStudies 31
4 TradeversusTechnology 39
5 Offshoring 55
PART II BROADENING THE CANVAS 67
6 MatchingWorkerswithJobs 69
7 RegionalDisparity 91
8 FirmCharacteristics 115
9 TechnologyChoice 133
10 ResidualInequality 147
Conclusion 161
viii Contents
Notes 177
References 191
Index 205
Preface
Opposition to globalization has become widespread, and concerns
about growing inequality have gained prominence. Moreover, al-
though part of the objection to globalization is based on social and
politicalconcernssuchasculturalautonomy,childlabor,ordomes-
tic sovereignty, a notable portion is founded on the argument that
globalization raises income disparity. The aim of this book is to ad-
dress this latter argument. Building on an extensive literature, I will
reviewthetheoreticalmechanismsthroughwhichforeigntradeand
offshoringaffectearningsinequalityandtheevidenceontheirquan-
titative effects. Other aspects of globalization, such as international
capitalflowsormigration,willbeaddressedonlyinpassing.
Ihopethatexpertsandnonexpertsalikewillfindthistreatisein-
teresting.Althoughmostoftheliteratureonthissubjectistechnical,
IhavesoughttoexplaintheargumentsinplainEnglishforthebene-
fitofreaderswhoarenottrainedineconomicdiscourse.Instyle,this
bookissimilartotwoofmypreviousbooks:TheMysteryofEconomic
GrowthandUnderstandingGlobalTrade.
Mydecisiontowritethisbookdevelopedoverseveralyears.While
researching this subject, I became fascinated with the intricacies of
the arguments and the innumerable challenges posed to empirical