Abstract
This chapter exposes some key empirical facts which underlie the analyses and diagnoses presented in this book. The major facts are: (1) a significant change in the international trade structure since the early 1990s, characterized by a substantial increase in the weight of emerging countries (the South) and the development of offshoring; (2) in the same period a large increase in FDI from advanced (the North) to emerging countries and a decrease in migration costs of capital and persons; (3) a concomitant increase in income inequality with a huge increase of top incomes in the North; (4) a substantial decrease in corporate tax rates and in the taxation of the top of the income ladder; (5) an increase in public social expenditure (and in public debt) which has not been sufficient to offset the increase in the pre-tax inequality in the North; (6) a labour market liberalization and a decrease in the weight of trade unions.
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Notes
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As the OECD data do not provide the rate for incomes higher than 1.67 times the mean income, the tax regressivity for high incomes is probably underestimated in Fig. 1.17.
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Hellier, J. (2023). Globalization and Inequality: The Facts. In: Globalization and Inequality in Advanced Economies. Economic Studies in Inequality, Social Exclusion and Well-Being. Springer, Cham. https://doi.org/10.1007/978-3-031-31256-4_1
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