Globalization, Inequality, and Redistribution: Theory and Evidence

38 Pages Posted: 19 Oct 2015

See all articles by Giray Gozgor

Giray Gozgor

Istanbul Medeniyet University

Priya Ranjan

University of California, Irvine - Department of Economics

Date Written: September 24, 2015

Abstract

This paper constructs a simple theoretical model to study the implications of globalization for inequality and redistribution. It shows that when globalization increases inequality, a policymaker interested in maximizing the sum of welfares of all agents increases redistribution. Empirically, the paper examines the effects of globalization on inequality and redistribution in a panel data set of 140 countries for the period from 1970 to 2012. It finds that both inequality and redistribution have been increasing with globalization. The results are robust to the inclusion of many different controls and the exclusion of outliers.

Keywords: globalization, income inequality, redistributive policies

JEL Classification: F680, D630, H110

Suggested Citation

Gozgor, Giray and Ranjan, Priya, Globalization, Inequality, and Redistribution: Theory and Evidence (September 24, 2015). CESifo Working Paper Series No. 5522. Available at SSRN: https://ssrn.com/abstract=2675996

Giray Gozgor

Istanbul Medeniyet University ( email )

Unalan Street 5
Uskudar
Istanbul, 34700
Turkey

Priya Ranjan (Contact Author)

University of California, Irvine - Department of Economics ( email )

3151 Social Science Plaza
Irvine, CA 92697-5100
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
122
Abstract Views
585
rank
228,765
PlumX Metrics