Why rich and poor countries should care about inequality

The Pierre building is seen through a stairway as customers enter the Apple retail store on Fifth Avenue in Manhattan, New York September 20, 2013. Apple Inc's newest smartphone models hit stores on Friday in many countries across the world, including Australia and China. REUTERS/Adrees Latif (UNITED STATES - Tags: BUSINESS TELECOMS) - RTX13SIP
The Pierre building is seen through a stairwayImage: REUTERS/Adrees Latif

We should have seen a decrease in inequality with globalization, but that’s not what has happened in the last 25 years, according to Nobel Laureate and Harvard Professor Eric Maskin. While there are a number of reasons to care about inequality, he says there is a high correlation between high inequality and social and political unrest, with consequences for a country’s political and economic stability.

In this podcast interview with Professor Maskin, he explores how and why inequality is a widespread phenomenon that affects rich and poor countries alike.

While it was widely expected that globalization would reduce inequality, income disparities between skilled and unskilled workers has only increased in recent years.

Improving the skill set of those left behind by globalization through education and training could make a significant difference to close the gap.

Listen to the interview here:

License and Republishing
World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use. The views expressed in this article are those of the author alone and not the World Economic Forum.