Financial globalization and wage inequality. (27th July 2022)

• Record Type: Journal Article
• Authors: Pi, Jiancai; Zhang, Kaiqi; Huang, Xiangyu
• Is Part Of: Scottish journal of political economy. Volume 70:Number 2(2023)
• Page Start: 144
• Page End: 157
• Publication Date: 2022-07-27
• Subjects: capital taxation -- financial globalization -- wage inequality; Great Britain -- Economic conditions -- 1945-1964 -- Periodicals; Great Britain -- Economic conditions -- 1964-1979 -- Periodicals; Great Britain -- Economic conditions -- 1979-1997 -- Periodicals; 330.9411005
• DOI: 10.1111/sjpe.12333
• Languages: English
• ISSNs: 0036-9292

Abstract

Abstract: This paper analyzes how financial globalization affects skilled‐unskilled wage inequality. We treat financial globalization as more regions being integrated into the global financial market. We find that a higher degree of financial globalization will decrease skilled‐unskilled wage inequality if it induces a small increase in the capital tax rate. However, a higher degree of financial globalization will increase skilled‐unskilled wage inequality if it induces a big increase in the capital tax rate.