Income inequality is increasing around the world, both between and within countries, as growth seems to mainly benefit an urban elite of capital owners and highly-educated workers. This has triggered various kinds of social and political conflicts both in developed and in developing countries. Resolving these conflicts is one of the major societal challenges of our times and it requires solid understanding of the dynamics of global development and inequality, which is what this research area will focus on. We aim at generating new explanations regarding the patterns of economic development and inequality in countries that are consistent with these long-run trends. These explanations should provide a comparative perspective at global development and will incorporate insights from Economic Growth, International Economics, New Economic Geography, Labour Economics, Development Economics as well as International Business.