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Economic globalisation, inequality and the role of social protection


  • Andreas Bergh

    (Lund University)

  • Alexandre Kolev

    (OECD Development Centre)

  • Caroline Tassot

    (OECD Development Centre)


This paper examines the link between economic globalisation, social protection expenditure, and within-country income inequality. We examine the relationship using income inequality data from both the Luxembourg Income Study (LIS) and the Standardized World Income Inequality Database (SWIID). The results based on the LIS data confirm previous findings that economic globalisation, especially economic flows, associates with higher income inequality, and that social protection expenditure are negatively associated with inequality. Cette analyse examine les liens entre la mondialisation économique, les dépenses en protection sociale, et les taux d’inégalités de revenus au sein des pays. Nous mesurons cette relationen utilisant les données de l’Étude sur les Revenus deLuxembourg (LIS) et la base de données des inégalités de revenusstandardisée (SWIID). Les résultats basés sur la LIS confirment une relation positive entre la mondialisation économique, en particuliers les flux commerciaux, et le niveau d’inégalités économiques. La protection sociale est au contraire associée à un niveau plus faible des inégalités.

Suggested Citation

  • Andreas Bergh & Alexandre Kolev & Caroline Tassot, 2017. "Economic globalisation, inequality and the role of social protection," OECD Development Centre Working Papers 341, OECD Publishing.
  • Handle: RePEc:oec:devaaa:341-en
    DOI: 10.1787/c3255d32-en

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    More about this item


    Globalisation; Income Inequality; Social Protection;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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