Did Partial Globalization Increase Inequality? Did Inequality Stimulate Globalization Backlash? The case of the Latin American Periphery, 1950-80

Inequality is an important threat to the globalization of the world economy that we experience today. This contribution uses a new measure of inequality: heigth inequality. It covers not only wage recipients, but also the self-employed, the unemployed, housewifes, children, and other groups who may not be participating in a market economy, for the 1950-80 period. It turns out that within-country inequality is higher in time periods of greater openness. We also find that inequality leads to a “globalization backlash“. The closing of commodity and capital markets did always take place during – or 5-10 years after – inequality peaks.