| Many observers have noticed a sharp divergence of household incomes in the last few decades that seems unrelated to the traditional explanations of inequality like economic development. My dissertation examines the question of how the rise of neoliberalism---or the market uber alles---impacts this inequality in countries around the world. High inequality is known to hinder economic growth, social mobility, democratic functioning, social capital, and to adversely affect health and education outcomes, as well as to exacerbate racial and residential inequality. Equality, meanwhile, is seen as desirable in its own right as a matter of social justice.;I address the research question with three research components. First, I develop a definition of neoliberalism in contrast to existing theoretical narratives, namely globalization, neo-Keynesianism, dependency theory, and economic freedom. I argue neoliberalism is a social and political project that emerged in the economic stagnation of the 1970s---a way for corporate elites to revitalize profits by whatever means necessary, regardless of the consequences. These means have included tax cuts, social spending cuts, deregulation, neoliberal monetary policy, corporate and industrial restructuring, free trade agreements and increased foreign investment, export-led growth, and the growing power of global economic institutions.;In the second part of the dissertation, I use the measurement developed in part one to analyze neoliberalism's relationship with inequality. I find a relatively robust relationship in the expected direction, with some exceptions, and the dual-model approach underscores the importance of analyzing both between- and within-country variation. The latter is useful because it inherently controls for cross-country heterogeneity, but it comes at a substantial loss of variability. The former has regrettably been derogated, but it provides much explanatory power and complements within-country analysis well. In other words, between-country variation captures deep institutional and cultural differences across countries, while the other captures more superficial but flexible policy shifts and trends within countries at various points in time.;In the third part, I expand on the above model to establish competitive testing of alternative explanations of rising inequality using contingency effects. The alternatives include globalization, technological advancement, industrial restructuring, human capital/skills, and female employment. The test asks whether the effects of these alternatives are actually contingent on above average levels of neoliberalism, and thus not responsible for inequality per se. Instead neoliberalism makes globalization, technology, and the other trends more inegalitarian than they would have otherwise been.;Overall, the findings demonstrate that neoliberalism is an important if not predominant explanation for rising income inequality that many countries have experienced in the last several decades. It suggests that superficial solutions like more education spending or job creation may be insufficient without addressing, at least to some extent, the deeper issue of neoliberal capitalism. I provide suggestions for this, but ultimately it means shifting our major institutions away from market logic toward public interests, control, and orientation. A future economic crisis more severe than the Great Recession could advance such systemic change, but popular protest will likely also be needed to ensure that addressing today's challenges becomes more egalitarian. (Abstract shortened by ProQuest.). |
