{
  "title": "Rising Income Inequality: Technology, or Trade and Financial Globalization?",
  "publication": "IMF Working Papers, July 1, 2008",
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  "summary": "We examine the relationship between trade and financial globalization and the rise in inequality in most countries in recent decades. We find technological progress as having a greater impact than globalization on inequality.",
  "sections": [
    {
      "heading": "Summary findings",
      "content": "- The study examines the relationship between trade and financial globalization and the rise in inequality in most countries in recent decades.\n- Technological progress has a greater impact on rising inequality than globalization.\n- Globalization has a limited overall impact on inequality because of two offsetting tendencies:\n  - Trade globalization is associated with a reduction in inequality.\n  - Financial globalization—and foreign direct investment in particular—is associated with an increase in inequality.\n- Both globalization and technological changes increase the returns on human capital.\n- Emphasis on the importance of education and training in both developed and developing countries to address rising inequality."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Prioritize education and training policies to enhance human capital returns and mitigate inequality driven by technological progress and globalization.\n- Recognize differentiated effects of globalization channels:\n  - Support policies that amplify the inequality-reducing aspects of trade globalization.\n  - Implement measures to manage the inequality-increasing effects associated with financial globalization and foreign direct investment.\n\n---\n\n Content in this bundle\n\n- wp08185\n  - wp08185 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp08185 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/rising-income-inequality-technology-or-trade-and-financial-globalization-22170"
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    "Authors: Chris Papageorgiou, Subir Lall, Florence Jaumotte",
    "Published: July 1, 2008",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451870435.001",
    "The study examines the relationship between trade and financial globalization and the rise in inequality in most countries in recent decades.",
    "Technological progress has a greater impact on rising inequality than globalization.",
    "Globalization has a limited overall impact on inequality because of two offsetting tendencies:",
    "Both globalization and technological changes increase the returns on human capital.",
    "Emphasis on the importance of education and training in both developed and developing countries to address rising inequality.",
    "Prioritize education and training policies to enhance human capital returns and mitigate inequality driven by technological progress and globalization.",
    "Recognize differentiated effects of globalization channels:",
    "**_wp08185**"
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