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Is Global Equality the Enemy of National Equality?

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  • Rodrik, Dani

    (University of Chicago)

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--rovides on its own an adequate frame for evaluating the consequences.

Suggested Citation

  • Rodrik, Dani, 2017. "Is Global Equality the Enemy of National Equality?," Working Paper Series rwp17-003, Harvard University, John F. Kennedy School of Government.
  • Handle: RePEc:ecl:harjfk:rwp17-003
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    References listed on IDEAS

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    1. David H. Autor & David Dorn & Gordon H. Hanson, 2016. "The China Shock: Learning from Labor-Market Adjustment to Large Changes in Trade," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 205-240, October.
    2. Tanzi,Vito & Schuknecht,Ludger, 2000. "Public Spending in the 20th Century," Cambridge Books, Cambridge University Press, number 9780521662918.
    3. repec:cup:apsrev:v:104:y:2010:i:04:p:644-662_00 is not listed on IDEAS
    4. Rosenzweig, Mark R., 2010. "Global Wage Inequality and the International Flow of Migrants," Center Discussion Papers 56757, Yale University, Economic Growth Center.
    5. Dani Rodrik, 2016. "Premature deindustrialization," Journal of Economic Growth, Springer, vol. 21(1), pages 1-33, March.
    6. Michael A. Clemens & Lant Pritchett, 2016. "The New Economic Case for Migration Restrictions: An Assessment," CID Working Papers 314, Center for International Development at Harvard University.
    7. 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 2017-06-02 17:26:07

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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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