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This paper analyzes how financial globalization affects skilled‐unskilled wage inequality. We treat financial globalization as more regions being integrated into the global financial market. We find that a higher degree of financial globalization will decrease skilled‐unskilled wage inequality if it induces a small increase in the capital tax rate. However, a higher degree of financial globalization will increase skilled‐unskilled wage inequality if it induces a big increase in the capital tax rate. [ABSTRACT FROM AUTHOR]

This paper stresses the role of industrial organization of crime, and explores how organized crime affects wage inequality. We find that, when only unskilled workers (or both skilled and unskilled workers) engage in organized crime, an increase in the number of criminal groups will increase wage inequality if (1) the skilled sector is more capital intensive than the unskilled sector, and (2) the price elasticity of demand for the skilled product is large enough. However, when there are only skilled workers engaging in organized crime, condition (1) is sufficient to widen wage inequality, irrespective of the price elasticity. [ABSTRACT FROM AUTHOR]