How will international integration affect welfare policies? This paper considers the possibilities of financing public sector activities (public consumption and social security expenses) by general (wage) taxation in an economy which becomes more integrated in international product markets. Even...

How will international integration affect welfare policies? This paper considers the possibilities of financing public sector activities (public consumption and social security expenses) by general (wage) taxation in an economy which becomes more integrated in international product markets. Even...

Even when labour mobility is low, international intergation affects labour markets by making jobs more mobile. This runs via product market integration, which is an essential element of European integration. Increasing job mobility affects the possibilities single countries perceive in pursuing...