Globalization and a welfare program for the marginalized

Udo Broll, Alexander Kemnitz and Vivekananda Mukherjee

No 05/09, Dresden Discussion Paper Series in Economics from Technische Universität Dresden, Faculty of Business and Economics, Department of Economics

Abstract: 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.

Keywords: Globalization; inequality; marginalization; policy (search for similar items in EconPapers)
JEL-codes: F42 I30 O15 O19 (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:tuddps:0509

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