Within a model where the parents make the decisions relating to their children’s education, we show that skill dynamics normally results in a sub-optimal situation involving income per capita. This derives from an under-education trap that is endogenously generated. When sub-optimality is...

The predictions from the traditional North-South HOS approach are at variance with the main characteristics of the Inequality-Globalization nexus. It is shown that by modifying this model and relaxing some of its most restrictive assumptions, it is possible to generate these characteristics....

We review the literature on the links between inequality, growth and welfare. Three questions are addressed: 1) What is the impact of growth and development on inequality? 2) What is the impact of inequality on growth, development and welfare? 3) What is the impact of proequality public policies...

To analyse the globalization-inequality relationship, we extend the North-South HOS model by assuming (i) that the size of the South (emerging countries) increases over time and that the North (advanced countries) and the South never stand simultaneously inside the diversification cone, (ii)...

To analyse in-work poverty, we build a model in which human capital and productivity varies over time with experience, time-related obsolescence and poverty. The model reveals four possible trajectories: poverty to exclusion; permanent poverty; the emergence from poverty; poverty to non-poor...

Over the last thirty years, both developed and developing countries have experienced a huge globalization of their economies, which has coincided with an increase in intra-country income inequality, both within and between skill groups. This article surveys the key mechanisms of the...