This article contributes to a clear understanding of important aspects of economic globalization. Specifically, we want to highlight the distributional concerns and how these are related to efficiency aspects of globalization. To this end, we identify relevant scenarios within a simple model of...

In recent decades, many countries experienced both a rise in top income shares and an increase of income inequality among the top earners. In this paper, I study the role of international trade as a catalyst for this development and analyze the associated welfare effects. I build a simple...

The present paper seeks to explain the pattern of income redistribution in a globalised world of increased market income inequality and lower costs of factor mobility. In some countries, larger market income inequality has been met by an increased redistributive effort, thus keeping the...

It is theoretically clear and may be verified empirically that efficient financial markets can make it less necessary for policy to try and offset the welfare effects of labour income risk and unequal consumption dynamics. The literature has also pointed out that, since international competition...

The paper analyzes the labor market effects of globalization when foreign market entry is costly and risky. With flexible labor markets, a fall in foreign market entry cost tends to generate more income inequality. By contrast, when workers cannot easily switch industries and wages are...

The demographic problems in developed countries are getting more and more important. Very low fertility rates especially among skilled individuals will soon become relevant for a country's economy. Also of importance is education of children. Since there is an increasing demand for skilled...

In this paper, we assess the effect of globalization on the distribution of income within countries, focussing on the influence of foreign direct investment. We analyze data for 72 countries, 1970-90. We incorporate in our tests the Kuznets (1955) curve, measures of the character of political...

The aim of this work is to investigate the role played by the so-called 'globalization' processes of the last couples of decades on the international patterns of technological learning and on the distribution of incomes and growth. First, we re-assess the evidence on the general patterns of the...

In this work, we present an assessment of the nature and impact of current globalizing tendencies at various levels of observation. The evidence in this respect suggests that it has mostly concerned financial flows (especially short-term ones); to some extent trade flows; and only to very...

Advanced industrial democracies experience increasing inequalities or at least a new trade-off between equality and growth: liberal welfare states opted for growth and accepted rising inequality, while conservative welfare states tried to hold back inequality, thereby accepting lower growth, and...