Economics at your fingertips  

Globalization and the Inequality–Unemployment Tradeoff

Joel Hellier and Nathalie Chusseau

Review of International Economics, 2010, vol. 18, issue 5, 1028-1043

Abstract: Over the last 20 years, advanced economies have experienced an “unemployment versus inequality” tradeoff that is critically uneven across countries. To explain this, we propose an extended HOS model in which: the factors are skilled and unskilled labor; there is a continuum of goods; the world comprises two North countries (one egalitarian and one nonegalitarian) and the South; there is no factor price equalization; globalization consists in the South cornering a growing share of world production. In the North, globalization entails an inequality–unemployment tradeoff and the adjustment to globalization is more painful for the country that was initially inequality‐oriented.

Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17) Track citations by RSS feed

Downloads: (external link)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0965-7576

Access Statistics for this article

Review of International Economics is currently edited by E. Kwan Choi

More articles in Review of International Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2023-07-09
Handle: RePEc:bla:reviec:v:18:y:2010:i:5:p:1028-1043