Exploring Globalisation’s Impact on Income Inequality

The evolution of globalisation, while contributing to worldwide economic growth, has also introduced new economic challenges including increased income inequality and market failures due to carbon emissions. This was the view expressed by Eric S Maskin, Adams University Professor at Harvard’s Department of Economics.

Maskin, a 2007 Nobel Laureate in Economics for his work in mechanism design theory, shed light on the issue of social inequality and how governments should approach policies in the wake of an economic slowdown and climate change. He pointed out that globalisation has often favoured workers with higher skills, leaving low-skilled workers in a more disadvantaged position, thus exacerbating income inequality.

While redistributing wealth from high-income to low-income individuals is one solution, Maskin argued that it does not provide a long-term fix, as it can lead to…