This chapter reviews recent theoretical work on the effect of factor mobility and the ensuing tax competition on the capacity of governments to raise revenue and redistribute income. It focuses on three issues: the relevance and limitations of the race to the bottom result, the benefits and...

1. Globalization and Inequality: The Facts -- 2. Trade and Inequality -- 3. Mobility of Tax Bases and Tax Competition -- 4. Anti-inequality policies and globalization -- 5. Further researches and policy implications.