IS GLOBAL COMPETITION MAKING THE POOR EVEN POORER

In recent years, average real wages have fallen, while the distributio n of income has become less equal. This applies not just to the United States, but to a number of countries. At the same time, ''globalizati on'' has intensified, as national economies have become more closely c onnected through increased international commerce. Has globalization d epressed wages and exacerbated inequality? To address this issue, this article first presents some summary data on globalization and income distribution. Consideration is then given to various explanations of i ncreasing income inequality. The author concludes that convincing evid ence has not yet been marshaled to support the hypothesis that increas ed globalization has contributed substantially to greater inequality, although globalization remains suspect. He ends the article with some recommendations for policy.