Does Trade Fuel Inequality?

Inequality has become a major political preoccupation in the advanced economies – and for good reason. In the US, according to the recently released World Inequality Report 2018, the share of national income claimed by the top 1% of the population rose from 11% in 1980 to 20% in 2014, compared to just 13% for the entire bottom half of the population. Qualitatively similar, though less pronounced, trends characterise other major countries such as France, Germany, and the UK.