Globalization and inequality in Latin America

Abstract We survey the recent literature studying the effects of globalization on inequality in Latin America. Our focus is on research emerging from the late 2000s onward, with an emphasis on empirical work considering new mechanisms, studying new dimensions of inequality and developing new methodologies to capture the many facets of globalization’s relationship to inequality. Both design-based and quantitative work in this area finds that imperfect mobility across sectors and regions is crucial to understanding the effects of trade liberalization on inequality. Our overarching recommendation is that researchers develop unifying frameworks to help synthesize the results of individual studies that focus on distinct aspects of globalization’s relationship to inequality.