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Globalisation, inequality and redistribution

Author

Listed:
  • Bjorvatn, Kjetil

    (Norwegian School of Economics and Business Administration)

  • Cappelen, Alexander

    (Dept. of Economics, University of Oslo)

Abstract

The present paper seeks to explain the pattern of income redistribution in a globalised world of increased market income inequality and lower costs of factor mobility. In some countries, larger market income inequality has been met by an increased redistributive effort, thus keeping the distribution of disposable incomes relatively stable. In other countries, larger market inequality has been accompanied by a reduction in transfers, thus leading to growth in disposable income inequality. In our model, the initial level of market income inequality is crucial in explaining how an increase in this variable affects redistribution.

Suggested Citation

  • Bjorvatn, Kjetil & Cappelen, Alexander, 2004. "Globalisation, inequality and redistribution," Memorandum 16/2004, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:2004_016
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    File URL: http://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2004/Memo-16-2004.pdf
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    References listed on IDEAS

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    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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