Globalization and a Welfare Program for the Marginalized
Dresden Discussion Paper in Economics No. 05/09
16 Pages Posted: 1 Dec 2009
Date Written: June 1, 2009
Abstract
We study the economic relationship between globalization and inequality within a country. In a partial equilibrium it is shown even when the local government exclusively maximizes the welfare of the marginalized (unemployed) people, relative consumption inequality between employed and the marginalized always rises by intensified globalization. However in certain situations the relative income inequality may fall.
Keywords: Globalization, inequality, marginalization, policy
JEL Classification: I30, 015, 019, F42
Suggested Citation: Suggested Citation
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