Can We Have Our Cake and Eat it Too? Liberalization, Economic Growth, and Income Inequality in Advanced Industrial Societies

Kwon, Roy H.

doi:10.1093/sf/sow077

Cited by 38 publications

(32 citation statements)

References 40 publications

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“…While some scholars disagree on the magnitude of the effect of international trade on income distribution (Krugman and Lawrence ), and others question whether international trade has an effect at all (Babones and Vonada ), some research found international trade to increase inequality in advanced industrial countries (Kerrissey ; Kwon ; Mahutga et al. ).…”

Section: National Income Inequality and Globalizationmentioning

confidence: 99%

“…However, there is disagreement among scholars regarding the degree to which globalization may be implicated in the increase of income inequality and the role of the welfare state in reducing national income inequality. Some claim that globalization should have no effect on income inequality (Mahler ), while others implicate globalization in these income inequality upswings in many advanced industrial countries (Blanton and Blanton ; Kerrissey ; Kwon ; Mahutga, Anthony, and Kwon ). This paper brings new evidence to this debate by contrasting effects of globalization and welfare state indicators on two measures of income inequality (i.e., pretax‐and‐transfer and posttax‐and‐transfer income inequality).…”

Section: Introductionmentioning

confidence: 99%

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Income Inequality, Globalization, and the Welfare State: Evidence from 23 Industrial Countries, 1990–2009

Auguste

2018

Sociological Forum

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The debate regarding the welfare state–weakening effect and the income inequality‐increasing effect of globalization remains a contentious issue among stratification scholars. For some, globalization increases income inequality, while for others, globalization has no, or a negligible, effect on income inequality. This study brings new evidence to bear on this debate by separately investigating effects of multiple indicators of globalization (international trade, foreign direct investment [FDI] and immigration), and of welfare state generosity (government social‐protection spending) on (1) income inequality before taxes and transfers and (2) income inequality after taxes and transfers, using data from 23 Organisation for Economic Co‐operation and Development (OECD) countries over 1990–2009. First, results show a positive effect of international trade, a negative effect of immigration, but no effect of FDI and government social‐protection spending on income inequality before taxes and transfers. Second, results show no effect of the globalization indicators but a negative effect of government social‐protection spending on income inequality after taxes and transfers. These findings suggest that (1) globalization has inequality‐increasing effects depending on measures of income inequality; (2) the welfare state, in many OECD countries, continues to shape income distribution; and (3) in contrast with the popular narrative, immigration may decrease income inequality.

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Section: National Income Inequality and Globalizationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Income Inequality, Globalization, and the Welfare State: Evidence from 23 Industrial Countries, 1990–2009

Auguste

2018

Sociological Forum

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“…This might explain the somewhat puzzling question of why the public is, as we found, increasingly opposed to income inequality (Schmidt‐Catran, ) while at the same time increasingly opposed to government intervention in social welfare in the European context. Although scholars clearly see the causal relationship between liberalisation and income inequality, members of the public may not engage this linkage cognitively when forming opinions and policy preferences (Gugushvili, ; Kenworthy, ; Kwon, ; OECD, 2008; Pickett & Wilkinson, ). Therefore, support for liberalisation may derive in part from public lack of knowledge on what is at stake.…”

Section: Discussionmentioning

confidence: 99%

The limits of inequality: Public support for social policy across rich democracies

Breznau

Hommerich

2018

Int J Soc Welfare

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Does public opinion react to inequality, and if so, how? The social harms caused by increasing inequality should cause public opinion to ramp up demand for social welfare protections. However, the public may react to inequality differently depending on institutional context. Using ISSP and WID data (1980‒2006), we tested these claims. In liberal institutional contexts (mostly English‐speaking), increasing income inequality predicted higher support for state provision of social welfare. In coordinated and universalist contexts (mostly of Europe), increasing inequality predicted less support. Historically higher income concentration predicted less public support, providing an account of the large variation in inequality within the respective liberal and coordinated contexts. The results suggest opinions in liberal societies – especially with higher historical inequality – reached the limits of inequality, reacting negatively; whereas in coordinated/universalist societies – especially with lower historical inequality – opinions moved positively, as if desiring more inequality.

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“…This might explain the somewhat puzzling question of why the public is, as we found, increasingly opposed to income inequality (Schmidt-Catran, 2016) while at the same time increasingly opposed to government intervention in social welfare in the European context. Although scholars clearly see the causal relationship between liberalisation and income inequality, members of the public may not engage this linkage cognitively when forming opinions and policy preferences (Gugushvili, 2015;Kenworthy, 1999;Kwon, 2016;OECD, 2008;Pickett & Wilkinson, 2015).…”

Section: Discussionmentioning

confidence: 99%

The Limits of Income Inequality: Public Support for Social Policy across Rich Democracies

Breznau¹,

Hommerich²

2017

Preprint

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Does public opinion react to inequality, and if so, how? The social harms caused by increasing inequality should cause public opinion to ramp up demand for social welfare protections.However, the public may react to inequality differently depending on institutional context. Using ISSP and WID data (1980-2006) we tested these claims. In liberal institutional contexts (mostly English-speaking), increasing income inequality predicted higher support for state provision of social welfare. In coordinated and universalist contexts (mostly of Europe), increasing inequality predicted less support. Historically higher income concentration predicted less public support, providing an account of the large variation in inequality within the respective liberal and coordinated contexts. The results suggest opinions in liberal societiesespecially with higher historical inequality -reached the limits of inequality, reacting negatively; whereas in coordinated/universalist societies -especially with lower historical inequality -opinions moved positively, as if desiring more inequality.

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Can We Have Our Cake and Eat it Too? Liberalization, Economic Growth, and Income Inequality in Advanced Industrial Societies

Cited by 38 publications

References 40 publications

Income Inequality, Globalization, and the Welfare State: Evidence from 23 Industrial Countries, 1990–2009

Income Inequality, Globalization, and the Welfare State: Evidence from 23 Industrial Countries, 1990–2009

The limits of inequality: Public support for social policy across rich democracies

The Limits of Income Inequality: Public Support for Social Policy across Rich Democracies

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