International Journal of Comparative Sociology current issue

Inequality beyond Globalization: Searching for the Missing Pieces of the Puzzle: Introduction to Special Issue

Suter, C. — 2009-09-23

Globalization and North--South Inequality, 1870--2000: A Factor for Convergence, Divergence or Both?

Rasler, K., Thompson, W. R. — 2009-09-23

Analysts continue to debate the nature of the relationship between globalization and global inequality between states, with some arguing that globalization increases inequality, others saying that the relationship is negative, and still others suggesting that the relationship varies over time. There is actually more overlap in these positions than is apparent — an element underlined by our own argument that globalization’s effects can be both positive and negative simultaneously. We argue that globalization contributes to intra-Northern convergence while it reinforces North—South divergence. An 1870—2000 time series analysis of the relationships among trade and financial globalization and North—South inequality supports this prediction, while also finding that the effects of globalization are time dependent.

Income Distribution in the Latin American Southern Cone during the First Globalization Boom and Beyond

Bertola, L., Castelnovo, C., Rodriguez, J., Willebald, H. — 2009-09-23

Latin America is the most unequal region in the world and there is intense debate concerning the explanations and timing of such high levels of income inequality. Latin America was also the region, not including European Offshoots, which experienced the most rapid growth during the first globalization boom. It can, therefore, be taken as an interesting case of study regarding how globalization forces impinged on growth and income distribution in peripheral regions. This article presents a first estimate of income inequality in the Southern Cone of South America (Brazil 1872 and 1920, Chile 1870 and 1920, Uruguay 1920) and some assumptions concerning Argentina (1870 and 1920), and Uruguay (1870). We find an increasing trend towards inequality between 1870 and 1920, which can be explained as a process of inequality both within individual countries and among countries. This trend is discussed along three lines: the relationship between inequality and per capita income levels; the dynamics of the expansion to new areas; and movements of relative factor prices and of the terms of trade. During the current globalization process inequality remained apparently stable, as a result of contradictory movements: within-country inequality increased, especially in the three countries with the highest per capita income; on the other hand, between-country inequality was reduced due to the process of club-convergence among the Southern Cone countries. Divergence with core countries was deepened. Some implicit results seem to show that state-led industrialization was featured by decreasing inequality, both within and among countries.

Remapping Inequality in Europe: The Net Effect of Regional Integration on Total Income Inequality in the European Union

Beckfield, J. — 2009-09-23

Research on the determinants of inequality has implicated globalization in the increased income inequality observed in many advanced capitalist countries since the 1970s. Meanwhile, a different form of international embeddedness — regional integration — has largely escaped attention. Regional integration, conceptualized as the construction of international economy and polity within negotiated regions, should matter for inequality. This article offers theoretical arguments that distinguish globalization from regional integration, connects regional integration to inequality through multiple theoretical mechanisms, develops hypotheses on the relationship between regional integration and inequality, and reports fresh empirical evidence on the net effect of regional integration on inequality in Western Europe. Three classes of models are used in the analysis: 1) time-series models where region-year is the unit of analysis, 2) panel models where country-year is the unit of analysis, and 3) analysis of variance to identify how the between- and within-country components of income inequality have changed over time. The evidence suggests that regional integration remaps inequality in Europe. Regionalization is associated with both a decrease in between-country inequality, and an increase in within-country inequality. The analysis of variance shows that the net effect is negative, and that within-country inequality now comprises a larger proportion of total income inequality.

Sector Bias and Sector Dualism: The Knowledge Society and Inequality

Rohrbach, D. — 2009-09-23

There are several explanations for the inequality upswing in the literature: rising globalization, the institutional re-structuring of the nation-states, as well as changes in the relation between the demand for and the supply of skills. Concerning demand changes, Kuznets and Lewis identified two inequality affecting mechanisms with regard to the agriculture-to-industry transition: sector bias — that is, inequality within sectors — and sector dualism — that is, inequality between sectors. In this article it is analyzed whether there are analogue effects on inequality from the sectoral change to the knowledge society. Following the strategy of a most-similar design and a variable oriented approach the hypotheses are tested cross-nationally and longitudinally in 19 OECD countries between 1970 and 1999. To verify sectoral effects, error component models are computed regressing the Gini-coefficient on a globalization measure, the union density, the educational attainment as well as the employment and income differential in the knowledge sector. The results show that some amount of the inequality upswing in the last few decades can be explained by the sectoral change to the knowledge society.