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Is Global Equality the Enemy of National Equality?

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  • Rodrik, Dani

Abstract

The bulk of global inequality is accounted for by income differences across countries rather than within countries. Expanding trade with China has aggravated inequality in some advanced economies, while ameliorating global inequality. But the 'China shock'� is receding and other low-income countries are unlikely to replicate China's export-oriented industrialization experience. Relaxing restrictions on cross-border labor mobility might have an even stronger positive effect on global inequality. However it also raises a similar tension. While there would likely be adverse effects on low-skill workers in the advanced economies, international labor mobility has some advantages compared to further liberalizing international trade in goods. I argue that none of the contending perspectives -- national-egalitarian, cosmopolitan, utilitarian -- provides on its own an adequate frame for evaluating the consequences.

Suggested Citation

  • Rodrik, Dani, 2017. "Is Global Equality the Enemy of National Equality?," CEPR Discussion Papers 11812, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:11812
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    References listed on IDEAS

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    1. Dani Rodrik, 2016. "Premature deindustrialization," Journal of Economic Growth, Springer, vol. 21(1), pages 1-33, March.
    2. George J. Borjas & Joan Monras, 2017. "The labour market consequences of refugee supply shocks," Economic Policy, CEPR;CES;MSH, vol. 32(91), pages 361-413.
    3. Giovanni Peri, 2014. "Do immigrant workers depress the wages of native workers?," IZA World of Labor, Institute for the Study of Labor (IZA), pages 1-42, May.
    4. Branko Milanovic, 2015. "Global Inequality of Opportunity: How Much of Our Income Is Determined by Where We Live?," The Review of Economics and Statistics, MIT Press, vol. 97(2), pages 452-460, May.
    5. George J. Borjas, 2015. "Immigration and Globalization: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 53(4), pages 961-974, December.
    6. Lant Pritchett, Marla Spivack, 2013. "Estimating Income/Expenditure Differences across Populations: New Fun with Old Engel's Law-Working Paper 339," Working Papers 339, Center for Global Development.
    7. Wojciech Kopczuk & Joel Slemrod & Shlomo Yitzhaki, 2002. "Why World Redistribution Fails," NBER Working Papers 9186, National Bureau of Economic Research, Inc.
    8. Rosenzweig, Mark R., 2010. "Global Wage Inequality and the International Flow of Migrants," Working Papers 77, Yale University, Department of Economics.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Is Global Equality the Enemy of National Equality?
      by maximorossi in NEP-LTV blog on 2017-03-22 00:57:23

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    Cited by:

    1. Martin Ravallion, 2017. "Global Inequality when Unequal Countries Create Unequal People," NBER Working Papers 24177, National Bureau of Economic Research, Inc.

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