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Globalisation, inequality and redistribution

Cappelen, Alexander W.; Bjorvatn, Kjetil
Working paper
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URI
http://hdl.handle.net/11250/162768
Date
2004-06
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  • Discussion papers (SAM) [640]
Abstract
The present paper seeks to explain the pattern of income redistribution

in a globalised world of increased market income inequality

and lower costs of factor mobility. In some countries, larger market

income inequality has been met by an increased redistributive effort,

thus keeping the distribution of disposable incomes relatively stable.

In other countries, larger market inequality has been accompanied by

a reduction in transfers, thus leading to growth in disposable income

inequality. In our model, the initial level of market income inequality

is crucial in explaining how an increase in this variable affects redistribution.
Publisher
Norwegian School of Economics and Business Administration. Department of Economics
Series
Discussion paper
2004:15

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