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Globalization, Social Welfare and Labor Market Inequalities

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  • Tisdell, Clement A.
  • Svizzero, Serge

Abstract

Income inequality has increased sharply in higher income countries. Theories attributing this to bifurcation of labor markets are examined. Some theorists attribute this bifurcation primarily to technical change with influence from globalization. Others take an opposite viewpoint. A contrasting view presented here is that globalization is strongly linked with technological change more significantly even if globalization increases economic efficiency and growth in high-income countries, it can raise income inequality and reduce social welfare. International fiscal competitiveness may, it is argued, contribute to income inequality and make all nations worse off. Trends in public social expenditure and in taxation receipts in higher income countries, including Singapore, are examined to determine the empirical support for the theory.

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Bibliographic Info

Paper provided by University of Queensland, School of Economics in its series Economic Theory, Applications and Issues Working Papers with number 90525.

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Date of creation: Jun 2003
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Handle: RePEc:ags:uqseet:90525

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Keywords: fiscal competition; globalization; income inequality; labor markets; public economics; Labor and Human Capital; Public Economics; J00; F00; L00;

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  1. Tisdell, Clement A., 2001. "Globalisation, the Environment and Sustainability: EKC, Neo-Malthusian Concerns and the WTO," Economic Theory, Applications and Issues Working Papers 90502, University of Queensland, School of Economics.
  2. Svizzero, Serge & Tisdell, Clement A., 2001. "Concepts of Competition in Theory and Practice," Economic Theory, Applications and Issues Working Papers 90469, University of Queensland, School of Economics.
  3. Lasselle, Laurence & Svizzero, Serge & Tisdell, Clement A., 2001. "Diversity, Globalisation and Market Stability," Economic Theory, Applications and Issues Working Papers 90501, University of Queensland, School of Economics.
  4. Tisdell, Clem & Seidl, Irmi, 2004. "Niches and economic competition: implications for economic efficiency, growth and diversity," Structural Change and Economic Dynamics, Elsevier, vol. 15(2), pages 119-135, June.
  5. Tisdell, Clement A., 2001. "The Political Economy of Globalisation: Processes involving the Role of Markets, Institutions and Governance," Economic Theory, Applications and Issues Working Papers 90507, University of Queensland, School of Economics.
  6. Tisdell, Clement A., 2001. "Competition and Evolution in Economics and Ecology Compared," Economic Theory, Applications and Issues Working Papers 90506, University of Queensland, School of Economics.
  7. Tisdell, Clement A. & Svizzero, Serge, 2001. "Globalization, Social Welfare, Labor Markets and Fiscal Competition," Economic Theory, Applications and Issues Working Papers 90503, University of Queensland, School of Economics.
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