IDEAS home Printed from https://ideas.repec.org/a/taf/rsocec/v78y2020i2p151-184.html

Egalitarian redistribution in the era of hyper-globalization

Author

Listed:
  • Gianluca Grimalda
  • Alain Trannoy
  • Fernando Filgueira
  • Karl Ove Moene

Abstract

Two traditional theorems of welfare economics posit a trade-off between a government redistribution targets and efficiency. We propose a third ‘claim’ of welfare economics, stating that in closed economies the actual efficiency costs associated with redistribution are small. We then examine the claim in the current phase of ‘hyper-globalization’. On the one hand, a race-to-the-bottom in taxation restricts the capacity to tax high-earners and the associated brain drain may affect a country’s long-run growth. On the other hand, demand for social insurance should be particularly high in an open economy, especially with advancing digitalization. Xenophobic sentiments may, however, offset this demand. We also discuss the impact of globalization on wage equalization and productive efficiency. We conclude against the idea that the welfare state is intrinsically unable to carry out its redistributive function in an era of globalization. However, its strategies and tools of intervention must be rethought.

Suggested Citation

  • Gianluca Grimalda & Alain Trannoy & Fernando Filgueira & Karl Ove Moene, 2020. "Egalitarian redistribution in the era of hyper-globalization," Review of Social Economy, Taylor & Francis Journals, vol. 78(2), pages 151-184, April.
    • Handle: RePEc:taf:rsocec:v:78:y:2020:i:2:p:151-184
    DOI: 10.1080/00346764.2020.1714072
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00346764.2020.1714072
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00346764.2020.1714072?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Li, Qianqian & Zhao, Zhengtang & Chen, Tingting, 2024. "The effect of public pension insurance integration on income disparities between urban-rural households: Evidence from a quasi-experiment in China," Finance Research Letters, Elsevier, vol. 66(C).
    2. Ugo Colombino & Nizamul Islam, 2021. "Global and digitalised economy, new labour demand scenarios and optimal tax-transfer reforms," CHILD Working Papers Series 90 JEL Classification: H2, Centre for Household, Income, Labour and Demographic Economics (CHILD) - CCA.
    3. Steffen Torp & Jon Reiersen, 2020. "Globalization, Work, and Health: A Nordic Perspective," IJERPH, MDPI, vol. 17(20), pages 1-20, October.
    4. Joël Hellier, 2021. "Globalization, Income Tax and the Redistribution–Progressivity Tradeoff," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 63(3), pages 384-410, September.
    5. Colombino, Ugo & Islam, Nizamul, 2022. "The "Robot Economy" and Optimal Tax-Transfer Reforms," IZA Discussion Papers 15198, IZA Network @ LISER.
    6. Yama Temouri & Vijay Pereira & Agelos Delis & Geoffrey Wood, 2023. "How Does Protectionism Impact Multinational Firm Reshoring? Evidence from the UK," Management International Review, Springer, vol. 63(5), pages 791-822, October.
    7. Ugo Colombino & Nizamul Islam, 2022. "The “Robot Economy†and optimal tax-transfer reforms," CHILD Working Papers Series 101 JEL Classification: H, Centre for Household, Income, Labour and Demographic Economics (CHILD) - CCA.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rsocec:v:78:y:2020:i:2:p:151-184. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RRSE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.