Financialization more than globalization! The contribution of global cities to inequalities
Olivier Godechot
(1, 2, 3)
,
Nils Neumann
(4)
,
Lasse Henriksen
(5)
,
Skeie Hermansen
(6)
,
Feng Hou
(7)
,
Naomi Kodama
(8)
,
Zoltán Lippényi
(9)
,
Silvia Maja Melzer
(10)
,
Halil Sabanci
(11)
,
Max Thaning
(12)
,
Paula Apascaritei
(13)
,
Dustin Avent Holt
(14)
,
Nina Bandelj
(15)
,
István Boza
(16)
,
Marta M Elvira
(17)
,
Gergely Hajdu
(18)
,
Alena Křižkova
(19)
,
Andrew Penner
(15)
,
Andreja Poje
(20)
,
William Rainey
(21)
,
Mirna Safi
(1, 22)
,
Matthew Soener
(23)
,
Donald Tomaskovic-Devey
(21)
1
Institut d'Études Politiques [IEP] - Paris
2 CRIS - Centre de recherche sur les inégalités sociales (Sciences Po, CNRS)
3 AxPo - AxPo Observatory of Market Society Polarization
4 University of Michigan
5 Copenhaguen Business School
6 UiO - University of Oslo
7 Statistics Canada
8 Meiji Gakuin University
9 University of Groningen [Groningen]
10 UB - Universitat de Barcelona
11 Frankfurt School of Finance and Management
12 Stockholm University
13 UC3M - Universidad Carlos III de Madrid [Madrid]
14 Augusta University
15 UC Irvine - University of California [Irvine]
16 Research Centre for Economic and Regional Studies
17 IESE Business School
18 Vienna University of Economics and Business
19 CAS - Czech Academy of Sciences [Prague]
20 Association of Free Trade Unions of Slovenia
21 UMass Amherst - University of Massachusetts [Amherst]
22 CRIS - Centre de Recherche Internationale pour la Sante
23 UIUC - University of Illinois at Urbana-Champaign [Urbana]
2 CRIS - Centre de recherche sur les inégalités sociales (Sciences Po, CNRS)
3 AxPo - AxPo Observatory of Market Society Polarization
4 University of Michigan
5 Copenhaguen Business School
6 UiO - University of Oslo
7 Statistics Canada
8 Meiji Gakuin University
9 University of Groningen [Groningen]
10 UB - Universitat de Barcelona
11 Frankfurt School of Finance and Management
12 Stockholm University
13 UC3M - Universidad Carlos III de Madrid [Madrid]
14 Augusta University
15 UC Irvine - University of California [Irvine]
16 Research Centre for Economic and Regional Studies
17 IESE Business School
18 Vienna University of Economics and Business
19 CAS - Czech Academy of Sciences [Prague]
20 Association of Free Trade Unions of Slovenia
21 UMass Amherst - University of Massachusetts [Amherst]
22 CRIS - Centre de Recherche Internationale pour la Sante
23 UIUC - University of Illinois at Urbana-Champaign [Urbana]
Olivier Godechot
- Fonction : Auteur
- PersonId : 742658
- IdHAL : olivier-godechot
- ORCID : 0000-0003-3199-8144
- IdRef : 055742025
Nils Neumann
- Fonction : Auteur
- PersonId : 1188698
- ORCID : 0000-0002-3120-9849
Mirna Safi
- Fonction : Auteur
- PersonId : 963683
- IdHAL : mirna-safi
- ORCID : 0000-0002-6730-8320
- IdRef : 154935492
Matthew Soener
- Fonction : Auteur
- PersonId : 1328161
Résumé
Global cities contribute to earnings inequality by concentrating high-paying jobs. But how much and why? In this paper, we quantify the contribution of global cities to earnings inequality and examine whether this contribution is attributable to the financialization of cities or their coordinating role in the global trade of goods and non-financial services. Using administrative linked employer-employee earnings data in nine advanced capitalist democracies and published Internal Revenue Service tables for the United States between 1989 and 2019, we show that global cities account for a substantial portion of national and regional increases in inequality. This contribution to inequality is far greater in financial cities than in the most comparable non-financial cities. In addition, the divergence in pay levels between financial and comparison cities increases with the financialization of respective countries. Our evidence thus shows that the contribution of global cities to inequality is driven more by the concentration of financiers than by other functions of global economic coordination.
Domaines
Economies et financesFormat du dépôt | Fichier |
---|---|
Type de dépôt | Pré-publication, Document de travail |
Titre |
en
Financialization more than globalization! The contribution of global cities to inequalities
|
Résumé |
en
Global cities contribute to earnings inequality by concentrating high-paying jobs. But how much and why? In this paper, we quantify the contribution of global cities to earnings inequality and examine whether this contribution is attributable to the financialization of cities or their coordinating role in the global trade of goods and non-financial services. Using administrative linked employer-employee earnings data in nine advanced capitalist democracies and published Internal Revenue Service tables for the United States between 1989 and 2019, we show that global cities account for a substantial portion of national and regional increases in inequality. This contribution to inequality is far greater in financial cities than in the most comparable non-financial cities. In addition, the divergence in pay levels between financial and comparison cities increases with the financialization of respective countries. Our evidence thus shows that the contribution of global cities to inequality is driven more by the concentration of financiers than by other functions of global economic coordination.
|
Auteur(s) |
Olivier Godechot
1, 2, 3
, Nils Neumann
4
, Lasse Henriksen
5
, Skeie Hermansen
6
, Feng Hou
7
, Naomi Kodama
8
, Zoltán Lippényi
9
, Silvia Maja Melzer
10
, Halil Sabanci
11
, Max Thaning
12
, Paula Apascaritei
13
, Dustin Avent Holt
14
, Nina Bandelj
15
, István Boza
16
, Marta M Elvira
17
, Gergely Hajdu
18
, Alena Křižkova
19
, Andrew Penner
15
, Andreja Poje
20
, William Rainey
21
, Mirna Safi
1, 22
, Matthew Soener
23
, Donald Tomaskovic-Devey
21
1
Institut d'Études Politiques [IEP] - Paris
( 300161 )
-
- France
2
CRIS -
Centre de recherche sur les inégalités sociales (Sciences Po, CNRS)
( 1140212 )
- 27 rue Saint-Guillaume, 75007 Paris
- France
3
AxPo - AxPo Observatory of Market Society Polarization
( 1148813 )
- France
4
University of Michigan
( 1108167 )
- MI
- États-Unis
5
Copenhaguen Business School
( 307305 )
-
- France
6
UiO -
University of Oslo
( 50791 )
- P.O 1072 Blindern 0316 Oslo
- Norvège
7
Statistics Canada
( 1170844 )
- Canada
8
Meiji Gakuin University
( 310983 )
- 1 Chome-2-37 Shirokanedai, Minato City, Tokyo 108-8636
- Japon
9
University of Groningen [Groningen]
( 131861 )
- PO Box 72 , 9700 AB Groningen
- Pays-Bas
10
UB -
Universitat de Barcelona
( 3447 )
- Gran Via de les Corts Catalanes, 585, 08007 Barcelona
- Espagne
11
Frankfurt School of Finance and Management
( 468398 )
- Allemagne
12
Stockholm University
( 300563 )
- SE-106 91 Stockholm
- Suède
13
UC3M -
Universidad Carlos III de Madrid [Madrid]
( 45695 )
- Calle Madrid 126, 28903 Getafe, Madrid
- Espagne
14
Augusta University
( 483188 )
- 1120 15th St, Augusta, GA 30912, États-Unis
- États-Unis
15
UC Irvine -
University of California [Irvine]
( 445806 )
- Irvine, CA 92697
- États-Unis
16
Research Centre for Economic and Regional Studies
( 577269 )
- 1097 Budapest Tóth Kálmán u. 4.
- Hongrie
17
IESE Business School
( 332897 )
-
- France
18
Vienna University of Economics and Business
( 152508 )
- Vienna
- Autriche
19
CAS -
Czech Academy of Sciences [Prague]
( 311871 )
- Národní 3, 117 20 Prague 1
- Tchéquie
20
Association of Free Trade Unions of Slovenia
( 1170845 )
- Slovénie
21
UMass Amherst -
University of Massachusetts [Amherst]
( 91189 )
- 300 Massachusetts Ave, Amherst, MA 01003
- États-Unis
22
CRIS -
Centre de Recherche Internationale pour la Sante
( 560170 )
- Burkina Faso
23
UIUC -
University of Illinois at Urbana-Champaign [Urbana]
( 303576 )
- 205 N. Mathews Ave., Urbana-Champaign, IL 61801
- États-Unis
|
Langue du document |
Anglais
|
Date de production/écriture |
2023-07
|
Date de publication |
2023-07
|
Domaine(s) |
|
Référence interne |
|
Fichier principal
WorldInequalityLab_WP2023_10_Global-cities-and-income-inequality_final-1.pdf ( 508.14 Ko
)
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