26 juillet 2023
Ecrit par WID.world

Global cities’ contribution to inequality is more driven by financialization than globalization, new study finds

Global cities contribute to income inequality by concentrating high-paying jobs. But how much and why?

Is it because they are major metropolises, political decision-making centers, places of global coordination of production and trade of non- financial goods and services? Or is it because they are financial centers?

Using data from 10 advanced capitalist democracies, this paper finds that:

  • Global cities play a significant role in the increase of income inequality at both national and regional levels.
  • The contribution to income inequality is more pronounced in financial cities compared to non-financial cities with similar characteristics.
  • As countries become more financially focused, the pay gap between financial cities and comparable non-financial cities widens.
  • The primary driver of global cities’ contribution to income inequality is the concentration of financiers in these cities rather than other global economic coordination functions.



  • Olivier Godechot, Sciences Po, CRIS-CNRS and AxPo, France
  • Nils Neumann, University of Michigan, USA
  • Lasse Henriksen, Copenhagen Business School, Denmark
  • Are Skeie Hermansen, University of Oslo, Norway
  • Feng Houd, Statistics Canada, Canada
  • Naomi Kodama, Meiji Gakuin University, Japan
  • Zoltan Lippenyi, University of Groningen, the Netherlands
  • Silvia Maja Melzer, Universitat de Barcelona, Spain
  • Halil Sabanci, Frankfurt School of Finance and Management, Germany
  • Max Thaning, Stockholm University, Sweden
  • Paula Apascaritei, Universidad Carlos III de Madrid, Spain
  • Dustin Avent Holt, Augusta University, USA
  • Nina Bandelj, University of California-Irvine, USA
  • Istvan Boza, Institute of Economics, Centre for Economic and Regional Studies, Hungary
  • Marta M. Elvira, IESE Business School, University of Navarra, Spain
  • Gergely Hajdu, Vienna University of Economics and Business, Austria
  • Alena Křižkova, Institute of Sociology, Czech Academy of Sciences, Czechia
  • Andrew Penner, University of California-Irvine, USA
  • Andreja Poje, Association of Free Trade Unions of Slovenia, Slovenia
  • William Rainey, University of Massachusetts-Amherst, USA
  • Mirna Safi, Sciences Po, CRIS-CNRS, France
  • Matthew Soener, University of Illinois at Urbana-Champaign, USA
  • Donald Tomaskovic-Devey, University of Massachusetts-Amherst, USA



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