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In the case of globalisation, what lies behind is the standard international trade model (usually referred to as the Heckscher–Ohlin model after the two Swedish economists Eli Heckscher and Bertil Ohlin), according to which the classes of workers, skilled and unskilled, are employed in two perfectly competitive economies, each with two sectors of production.

• globalisation
• technological change (information and communications technology)
• growth of financial services
• changing pay norms
• reduced role of trade unions
• scaling back of the redistributive tax-and-transfer policy

[...] we risk creating the impression that inequality is rising …

With the qualification that we have insufficient information about incomes at the top, we see in Latin America an episode of falling inequality that extends over a wide range of countries. [...] "there is no clear link between the decline in inequality and economic growth. Inequality has declined i…