Globalization, Inequality, and Redistribution: Theory and Evidence
نویسندگان
چکیده
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 e¤ects of globalization on inequality and redistribution in a panel data set of 140 countries for the period from 1970 to 2012. It nds that both inequality and redistribution have been increasing with globalization. The results are robust to the inclusion of many di¤erent controls and the exclusion of outliers. Key Words: Globalization, Income inequality, Redistributive policies JEL Classi cation Codes: F68, D63, H11 1Gozgor would like to acknowledge the grant of the Scienti c and Technological Research Council of Turkey (TUBITAK), 2219 program.
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