Globalization, Inequality, and Redistribution:Theory and Evidence

Arbeitspapier

This paper constructs a simple theoretical model to study the implications of globalization for inequality and redistribution. It shows that when globalization increases inequality, a policymaker interested in maximizing the sum of welfares of all agents increases redistribution. Empirically, the paper examines the effects of globalization on inequality and redistribution in a panel data set of 140 countries for the period from 1970 to 2012. It finds that both inequality and redistribution have been increasing with globalization. The results are robust to the inclusion of many different controls and the exclusion of outliers.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 5522

Classification and Topics

• Classification: Wirtschaft ; Economic Impacts of Globalization: Policy ; Equity, Justice, Inequality, and Other Normative Criteria and Measurement ; Structure, Scope, and Performance of Government
• Subject: globalization ; income inequality ; redistributive policies

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gozgor, Giray ; Ranjan, Priya
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/123151
• Last update: 10.03.2025, 11:41 AM CET