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Globalisation and the welfare state : more inequality – less redistribution?

Sandmo, Agnar
Working paper
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URI
http://hdl.handle.net/11250/162914
Date
2002-02
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  • Discussion papers (SAM) [676]
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 Economics
Series
Discussion paper
2002:4

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