OECD Development Centre Working Papers

The OECD Development Centre links OECD members with developing and emerging economies and fosters debate and discussion to seek creative policy solutions to emerging global issues and development challenges. This series of working papers is intended to disseminate the OECD Development Centre’s research findings rapidly among specialists in the field concerned. These papers are generally available in the original English or French, with a summary in the other language.

English, French

Economic globalisation, inequality and the role of social protection

This paper examines the link between economic globalisation, social protection expenditure, and within-country income inequality. We examine the relationship using income inequality data from both the Luxembourg Income Study (LIS) and the Standardized World Income Inequality Database (SWIID). The results based on the LIS data confirm previous findings that economic globalisation, especially economic flows, associates with higher income inequality, and that social protection expenditure are negatively associated with inequality.


Keywords: Social Protection, Income Inequality, Globalisation
JEL: D63: Microeconomics / Welfare Economics / Equity, Justice, Inequality, and Other Normative Criteria and Measurement; H53: Public Economics / National Government Expenditures and Related Policies / Government Expenditures and Welfare Programs; F61: International Economics / Economic Impacts of Globalization / Economic Impacts of Globalization: Microeconomic Impacts
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