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The Impact of Economic Globalisation and Changes in Policies and Institutions on Rising Earnings Inequality

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This chapter analyses possible causes of the increase in wage inequality among fulltime workers recorded in OECD countries during the past 25 years. It looks at the impact of economic globalisation that has come with trade and financial integration, together with the effects of technological change and developments in the fields of product and labour market regulations and institutions. It examines the interplay between these factors and separately considers shifts in the lower and upper halves of the wage distribution. It also addresses trends in sector‐based wage disparities between skilled and unskilled workers.

Document Type: Review Article

Publication date: December 1, 2011

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