"Episodes of account liberalization increase the Gini measure of inequality, based on panel
data estimates for 149 countries from 1970 to 2010. "
" These episodes are also associated with a persistent increase
in the share of income going to the top."
" We investigate three channels through which these impacts could occur."
" First, the impact of liberalization on inequality is stronger where credit markets lack depth and financial inclusion is low "
"positive impacts of liberalization on poverty rates also vanish when financial inclusion is low."
" Second, the impact on inequality is also stronger when liberalization is followed by a financial crisis. "
" Third, liberalization seems to alter the relative bargaining power of firms and workers: the labor share of income falls in the aftermath of capital account liberalization."
Three strikes and you're in !!!
" These episodes are also associated with a persistent increase
in the share of income going to the top."
" We investigate three channels through which these impacts could occur."
" First, the impact of liberalization on inequality is stronger where credit markets lack depth and financial inclusion is low "
"positive impacts of liberalization on poverty rates also vanish when financial inclusion is low."
" Second, the impact on inequality is also stronger when liberalization is followed by a financial crisis. "
" Third, liberalization seems to alter the relative bargaining power of firms and workers: the labor share of income falls in the aftermath of capital account liberalization."
Three strikes and you're in !!!
