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Globalization and a welfare program for the marginalized

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  • Broll, Udo
  • Kemnitz, Alexander
  • Mukherjee, Vivekananda

Abstract

We study the economic relationship between globalization and inequality within a country. In a partial equilibrium it is shown even when the local government exclusively maximizes the welfare of the marginalized (unemployed) people, relative consumption inequality between employed and the marginalized always rises by intensified globalization. However in certain situations the relative income inequality may fall. --

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Bibliographic Info

Paper provided by Dresden University of Technology, Faculty of Business and Economics, Department of Economics in its series Dresden Discussion Paper Series in Economics with number 05/09.

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Date of creation: 2009
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Handle: RePEc:zbw:tuddps:0509

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Web page: http://www.tu-dresden.de/wiwi/
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Related research

Keywords: Globalization; inequality; marginalization; policy;

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References

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  1. Sugata Marjit & Vivekananda Mukherjee & Martin Kolmar, 2006. "Poverty, taxation and governance," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 15(3), pages 325-333.
  2. Basu, Kaushik, 2005. "Globalization, Poverty and Inequality: What Is the Relationship? What Can Be Done?," Working Papers 05-13, Cornell University, Center for Analytic Economics.
  3. Chris Elbers & Peter Lanjouw & Johan Mistiaen & Berk Özler, 2008. "Reinterpreting between-group inequality," Journal of Economic Inequality, Springer, vol. 6(3), pages 231-245, September.
  4. Anders Aslund & Marek Dabrowski, 2008. "Challenges of Globalization: Imbalances and Growth," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4181.
  5. Kreickemeier, Udo & Raimondos-Møller, Pascalis, 2006. "Tariff-Tax Reforms and Market Access," Working Papers 06-2006, Copenhagen Business School, Department of Economics.
  6. Daniel Cohen, 2007. "Globalization and Its Enemies," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262532972, December.
  7. Kemnitz, Alexander, 2006. "Immigration, Unemployment and Domestic Welfare," Beiträge zur Finanzwissenschaft, Mohr Siebeck, Tübingen, edition 1, volume 22, number urn:isbn:9783161489945, July.
  8. Broll, Udo & Mallick, Rajiv & Wong, Kit Pong, 2001. "International trade and hedging in economies in transition," Economic Systems, Elsevier, vol. 25(2), pages 149-159, June.
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