Globalisation and the welfare state : more inequality – less redistribution?
Working paper
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Date
2002-02Metadata
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- Discussion papers (SAM) [658]
Abstract
This paper considers the possible connection between globalisation and inequality in
Western welfare states. There are a number of theoretical reasons why increased trade
and factor mobility should lead to more inequality in rich countries. At the same time,
there are arguments why globalisation should also make it more difficult to
redistribute incomes in favour of low- income groups, and this squeeze would seem to
lead to severe difficulties for traditional welfare state policies. However, the empirical
evidence for such a squeeze varies considerably between countries, and it is suggested
that a richer framework than the standard competitive model is needed to understand the forces at work.
Publisher
Norwegian School of Economics and Business Administration. Department of EconomicsSeries
Discussion paper2002:4