Does globalization affect top income inequality?

详细信息    查看全文

• 作者：René ; Cabral^a ; ¹ ; ^{rcabral@itesm.mx" class="auth_mail" title="E-mail the corresponding author} ; Rocí ; o Garcí ; a-Dí ; az^b ; ^{rociogarcia@itesm.mx" class="auth_mail" title="E-mail the corresponding author} ; André ; Varella Mollick^c ; ² ; ^{andre.mollick@utrgv.edu" class="auth_mail" title="E-mail the corresponding author}
• 关键词：F31 ; F32 ; F33 ; F34
• 刊名：Journal of Policy Modeling
• 出版年：2016
• 出版时间：September-October 2016
• 年：2016
• 卷：38
• 期：5
• 页码：916-940
• 全文大小：1543 K

文摘

We reexamine in this paper the role of globalization on top income shares (five classes from top 0.1% to top 10% of the income distribution) for a sample of 15 economies over the period 1970–2004. We investigate financial globalization measures that complement trade openness. Our system GMM (SGMM) estimations allow for a robust treatment of the endogeneity between income concentration and GDP per capita (as well as with taxation or government size). We find two interesting new results. First, the financial integration measure based on portfolio equity and FDI stocks (GEQ) turns out to have a large impact on top income shares, suggesting that the channel through which globalization affects income concentration is through FDI/equity flows. Second, we find strong support for the progressivity of taxation: there is an almost one to one negative effect of higher tax on top income (top 0.1%), which declines monotonically until the top 10% class.