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An Acceleration Mechanism of Within-Country Inequality by Globalization

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  • Harashima, Taiji

Abstract

This paper examines the possibility that the increases in within-country economic inequality that were observed in many countries since the 1980s were caused by deepening globalization through uneven capital accumulation across households by constructing a model based on the concept of sustainable heterogeneity. The model indicates that unless a government strengthens social welfare measures appropriately as globalization deepens (i.e., increases transfers from more-advantaged households to less-advantaged households), the level of within-country economic inequality will continue to increase. This result indicates the recent increases in within-country economic inequality may have been caused at least partially by the inaction of governments in the face of increasing globalization.

Suggested Citation

  • Harashima, Taiji, 2018. "An Acceleration Mechanism of Within-Country Inequality by Globalization," MPRA Paper 89807, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:89807
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    References listed on IDEAS

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    More about this item

    Keywords

    Capital accumulation; Globalization; Inequality; Social welfare; Sustainable heterogeneity;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

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