Working Paper No. 32 - Globalization and perceptions of social inequality

Past decades have shown trends indicating an increase in inequality between some countries due to globalization. Pressure has been put on governments to decrease their intervention, which has reduced their ability to apply redistributive policies and many of the poorest countries have increased the gap between the rich and the poor. The paper analyses how this gap can be reduced by looking at data showing how people around the world perceive inequality within their country and amongst countries and how supportive they are on domestic and international redistribution. The paper’s research demonstrates that 90 percent agree that economic differences between the rich and poor are too large and that the majority of people in developing, developed, and transition countries supported that people in rich countries pay an additional tax to help those in poor countries. These conclusions provide positive insight on resolving worldwide inequalities, but the paper also shows opposing views, notably within the United States.