abstract: 'This article tests the relative importance of globalization and

  technological change in explaining income inequality at higher and lower

  development levels. Besides, the article analyses the effectiveness of a

  set of policy measures for fighting inequality. We use relative pre-tax

  income shares as a proxy for inequality. Several linear and non-linear

  threshold panel data models with GDP per capita as the threshold

  variable are estimated for 42 countries over the period from 1994 to

  2016. We find that technology is the most important generator of

  inequality, while the effect of various globalization measures is weak

  and often insignificant. We find limited evidence that the effect of

  globalization differs with respect to the level of GDP per capita. Our

  results suggest that full employment policies in the low inflation

  environment are the most efficient solution for the inequality problem.

  Higher employment and low inflation rate decrease the inequality level.

  Other than that, we do not find other policy measures that satisfy the

  one-size-fits-all criteria for tackling inequality. Instead, a set of

  efficient policy measures against inequality, including expenditures on

  education, minimum wage policies, and lending rates, depend on the

  development level and idiosyncratic policies and institutions.'
affiliation: 'Globan, T (Corresponding Author), Univ Zagreb, Fac Econ \& Business,
  Zagreb, Croatia.

  Tica, Josip; Globan, Tomislav; Arcabic, Vladimir, Univ Zagreb, Fac Econ \& Business,
  Zagreb, Croatia.'
author: Tica, Josip and Globan, Tomislav and Arcabic, Vladimir
author-email: tgloban@efzg.hr
author_list:
- family: Tica
  given: Josip
- family: Globan
  given: Tomislav
- family: Arcabic
  given: Vladimir
da: '2023-09-28'
doi: 10.1080/1331677X.2021.1952466
earlyaccessdate: JUL 2021
eissn: 1848-9664
files: []
issn: 1331-677X
journal: ECONOMIC RESEARCH-EKONOMSKA ISTRAZIVANJA
keywords: 'Inequality; technology; globalization; openness; threshold model;

  employment rate'
keywords-plus: 'UNITED-STATES; INCOME INEQUALITY; WAGE INEQUALITY; ECONOMIC-GROWTH;

  EMPLOYMENT; SKILLS; LABOR'
language: English
month: DEC 31
number: '1'
number-of-cited-references: '42'
orcid-numbers: 'Tica, Josip/0000-0001-7937-1573

  Globan, Tomislav/0000-0001-5716-2113

  Arčabić, Vladimir/0000-0003-4173-8637'
pages: 1035-1060
papis_id: e248d353f84471ea8a1d9e197ec5b493
ref: Tica2022managingimpact
researcherid-numbers: 'Tica, Josip/B-7628-2013

  Globan, Tomislav/H-7550-2018

  Arčabić, Vladimir/H-8434-2018'
times-cited: '3'
title: Managing the impact of globalization and technology on inequality
type: Article
unique-id: WOS:000676038200001
usage-count-last-180-days: '8'
usage-count-since-2013: '22'
volume: '35'
web-of-science-categories: Economics
year: '2022'