@techreport{Andersen2001Welfare,
abstract = {How will international integration affect welfare policies? This paper considers the possibilities of
financing public sector activities (public consumption and social security expenses) by general
(wage) taxation in an economy which becomes more integrated in international product markets.
Even if labour is internationally immobile, the increased mobility of products and hence jobs
implies a change in the distortions arising from taxes and social security contributions levied on
labour income. Since financing of social security via general taxation involves a negative
externality the effects of international integration depend critically on the institutional structure of
the labour market. This paper shows that increased international integration inducing more
product market competition implies that it becomes more costly to maintain welfare systems
financed by general taxation.},
author = {Torben M. Andersen},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {J30; H30; H20; F10; 330; Product market integration; tax distortions; social security; and public consumption; Sozialstaat; Sozialversicherungsfinanzierung; Sozialversicherungsbeitrag; Lohnsteuer; Steuerwirkung; Internationaler Wettbewerb; Offene Volkswirtschaft; Globalisierung; Besch\"{a}ftigungseffekt; Theorie},
language = {eng},
number = {278},
title = {Welfare Policies, Labour Taxation and International Integration},
type = {IZA Discussion paper series},
url = {http://hdl.handle.net/10419/21130},
year = {2001}
}
