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- W2893680387 abstract "Changes in the distribution of income are one of the main challenges to social cohesion in OECD countries. In particular, empirical evidence points to a large share of growth accruing to the top 1% in the income distribution during the last three decades. The role of globalization in this process is hotly debated. In this paper, I present a theoretical mechanism to explain how globalization affects income distribution, which has not been studied extensively yet. I build my argument on the Melitz model, which I augment with a banking sector to replace the implicit complete financial market in the original paper. The generated rents thus become income-relevant and accrue by assumption to the firms’ top managers. This allows me to assess globalization’s effect on the top end of the income distribution. I find that globalization has a strong effect on income distribution but I do not conclude that reversing globalization is the solution for the challenge to social cohesion." @default.
- W2893680387 created "2018-10-05" @default.
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- W2893680387 date "2018-03-01" @default.
- W2893680387 modified "2023-09-27" @default.
- W2893680387 title "Globalization Effects on the Distribution of Income" @default.
- W2893680387 hasPublicationYear "2018" @default.
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