EconPapers    
Economics at your fingertips  
 

Egalitarian redistribution in the era of hyper-globalization

Gianluca Grimalda (), Alain Trannoy, Fernando Filgueira and Karl Ove Moene

Open Access Publications from Kiel Institute for the World Economy from Kiel Institute for the World Economy (IfW)

Abstract: Two traditional theorems of welfare economics posit a trade-off between a government redistribution targets and efficiency. We propose a third ‘claim’ of welfare economics, stating that in closed economies the actual efficiency costs associated with redistribution are small. We then examine the claim in the current phase of ‘hyper-globalization’. On the one hand, a race-to-the-bottom in taxation restricts the capacity to tax high-earners and the associated brain drain may affect a country’s long-run growth. On the other hand, demand for social insurance should be particularly high in an open economy, especially with advancing digitalization. Xenophobic sentiments may, however, offset this demand. We also discuss the impact of globalization on wage equalization and productive efficiency. We conclude against the idea that the welfare state is intrinsically unable to carry out its redistributive function in an era of globalization. However, its strategies and tools of intervention must be rethought.

Keywords: Globalization; redistribution; welfare state; race to the bottom; taxation (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/224924/1/E ... er-globalization.pdf (application/pdf)

Related works:
Journal Article: Egalitarian redistribution in the era of hyper-globalization (2020) Downloads
Working Paper: Egalitarian redistribution in the era of hyper-globalization (2020)
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: https://EconPapers.repec.org/RePEc:zbw:ifwkie:224924

Access Statistics for this paper

More papers in Open Access Publications from Kiel Institute for the World Economy from Kiel Institute for the World Economy (IfW) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().

 
Page updated 2021-01-21
Handle: RePEc:zbw:ifwkie:224924