Globalisation, Social Welfare, Public Policy and Labor Inequalities

Clement Tisdell and Serge Svizzero ()
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Serge Svizzero: CEMOI - Centre d'Économie et de Management de l'Océan Indien - UR - Université de La Réunion

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Abstract: Income inequality has increased sharply in higher income and in many lower income countries. The-ories attributing this to bifurcation of labor markets in higher income countries are examined. Some theorists attribute this bifurcation primarily to technical change with influence from globalization. Others take an opposite viewpoint. A contrasting view presented here is that globalization is strongly linked with technological change. More significantly even if globalization increases economic effi-ciency and growth in globalizing countries, it can raise income inequality and reduce social welfare in such countries. International fiscal competitiveness may, it is argued, contribute to income inequality and make all nations worse off. Trends in public social expenditure and in taxation receipts in higher income countries, including Singapore, are examined to determine the extent of empirical support for the theory.

Keywords: Fiscal competition; globalization; income inequality; labor markets; public economics (search for similar items in EconPapers)
Date: 2004-10
Note: View the original document on HAL open archive server: https://hal.univ-reunion.fr/hal-02153097
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Published in The Singapore Economic Review, 2004, 49 (02), pp.233-253. ⟨10.1142/S0217590804000901⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02153097

DOI: 10.1142/S0217590804000901

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