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Globalization

There does not seem to be a clear consensus on whether or not economic growth itself, let alone globalization, causes income inequality. Some development economists advocate that increased income inequality is a consequence of economic growth for emerging economies. In early stages of economic growth, the distribution of income will tend to worsen, whereas in later stages it will improve. This is know as the transition period. There are numerous explanations for why inequality seems to worsen during the early stages of economic growth. These are mostly related to the fact that early growth is usually in the manufacturing sector where employment is limited by wages that are high. As well as other issues with structural

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