Globalization and a welfare program for the marginalized
We study the economic relationship between globalization and inequality within a country. In a partial equilibrium it is shown even when the local government exclusively maximizes the welfare of the marginalized (unemployed) people, relative consumption inequality between employed and the marginalized always rises by intensified globalization. However in certain situations the relative income inequality may fall.
|Date of creation:||2009|
|Date of revision:|
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- Kreickemeier, Udo & Raimondos-Møller, Pascalis, 2006.
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CEPR Discussion Papers
5889, C.E.P.R. Discussion Papers.
- Basu, Kaushik, 2005.
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Working Paper Series
RP2005/32, World Institute for Development Economic Research (UNU-WIDER).
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