Title: Globalization and Inequality: Sharing Wealth One of Greatest Challenges
Headings: Globalization and Inequality: Sharing Wealth One of Society’s Greatest Challenges
Globalization and Inequality: Sharing Wealth One of Society’s Greatest Challenges
Why is Inequality Increasing?
Changing Employment
Regional Inequality
William R. Hauk

Content: More trade tends to benefit the firms that employ the most high-skilled workers while hurting their less-skilled counterparts. Regional Inequality
Also receiving attention in recent research is the extent to which some of these trade-induced changes can create regional inequality. Pioneering work by economists David Autor, David Dorn, and Gordon Hanson has shown that increased exposure to trade with China created large and persistent shocks to areas of the United States where import-competing firms were located. In short, the relevant question does not seem to be whether globalization or technological change is increasing income inequality in the United States. They seem to be complementary, rather than competing explanations. The more important question is what policies, if any, might address this challenge. Globalization and technological change both pose great opportunities for the world economy. Both have helped lead to historical reductions in global poverty. However, the by-product is an economy that has become increasingly divided into winners and losers from this process. How we share this wealth will be one of our greatest challenges as a society in the coming years.