Globalization radically changes income distribution and triggers intense international tax competition. Therefore, globalization entails an extensive restructuring of the welfare state. We analyze a parsimonious model of an open economy, in its trade and finance transactions with the rest of the...

Globalization radically changes income distribution and triggers intense international tax competition. Therefore, globalization entails an extensive restructuring of the welfare state. We analyze a parsimonious model of an open economy, in its trade and finance transactions with the rest of the...

High-skilled workers are four times more likely to migrate than low-skilled workers. This skill bias in migration - often called brain drain - has been at the center of a heated debate about the welfare consequences of emigration from developing countries. In this paper, we provide a global...