The Top 10 Percent Are the Main Beneficiaries of Globalization

A study of Dr. Valentin Lang, junior professor of Political Economy at the University of Mannheim, and his co-author Marina M. Tavares of the International Monetary Fund shows that the top ten percent of the national income distributions, in particular, have benefited from globalization.

The income of many people around the world has considerably increased due to the economic globalization of the last 50 years. However, these income gains are unevenly distributed. In their study, the researchers tried to answer the question if and how the globalization of the last 50 years has affected inequalities between people worldwide.

The result: Globalization has led to greater income inequalities within many countries. The gap between rich and poor has widened particularly in countries that have become more integrated into the global economy, such as China, Russia, and some Eastern European countries. At the same time, globalization has reduced inequality between countries. The differences between countries therefore play an increasingly minor role in the global inequality rate.

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