Developed countries have experienced widening yet uneven wage differentials in the globalization era since the 1980s. What explains these varying degrees of wage inequality in those countries? By employing time-series cross-section analyses of 12 OECD countries from 1970 to 1992, I found that leftist partisanship and dense labor organization tend to reduce the wage inequality, even when controlling for other relevant variables such as inflation, unemployment, GDP per capita, trade, and capital liberalization.
