- AutorIn
- Miriam Kohl
- Titel
- Trade, Inequality, and the Size of the Welfare State
- Zitierfähige Url:
- https://nbn-resolving.org/urn:nbn:de:bsz:14-qucosa-217393
- Schriftenreihe
- CEPIE Working Paper
- Bandnummer
- 01/17
- ISSN
- 2510-1196
- Abstract (EN)
- This paper investigates the effects of international trade in a general equilibrium model with heterogeneous firms where a welfare state redistributes income. We look at a very stylised progressive non-distortionary redistribution scheme. We show that for a given tax rate international trade increases income per capita, but also leads to higher income inequality. Two aspects of income inequality are examined. First, inter-group inequality between managers and workers is considered. Second, intra-group inequality within the group of managers is investigated. For a given tax rate the size of the welfare state and therefore the transfer per capita increases when going from autarky to trade. This second-round effect counteracts the primary increase in inequality, yet cannot outweigh it. Since the redistribution scheme is non-distortionary, it is possible to decrease trade-induced inequality by increasing the tax rate without jeopardising the gains from trade.
- Freie Schlagwörter (DE)
- Internationaler Handel, Einkommensungleichheit, Ungleichheit, Umverteilung, heterogene Firmen
- Freie Schlagwörter (EN)
- International trade, Income inequality, Redistribution, Heterogeneous firms
- Klassifikation (DDC)
- 330
- Klassifikation (RVK)
- QC 000
- Publizierende Institution
- Technische Universität Dresden, Dresden
- URN Qucosa
- urn:nbn:de:bsz:14-qucosa-217393
- Veröffentlichungsdatum Qucosa
- 12.01.2017
- Dokumenttyp
- Forschungsbericht
- Sprache des Dokumentes
- Englisch
- Lizenz / Rechtehinweis