Abstract
We analyze globalization impacts on changes in income inequality, focusing on the top and bottom of the income distribution. Data are for all US metro areas from 1980 to 1990. Income polarization has risen. The international flow of labor polarizes earnings by depressing wages among low-income workers. Producer services increase earnings at the upper levels, but, in contrast to the main theories, are unrelated to polarization. Reprinted by permission of Carfax Publishing, Taylor & Francis Ltd