Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/210927 
Year of Publication: 
2019
Series/Report no.: 
IFN Working Paper No. 1286
Publisher: 
Research Institute of Industrial Economics (IFN), Stockholm
Abstract: 
This paper examines whether social spending cushions the effect of globalization on within-country inequality. Using information on disposable and market income inequality and data on overall social spending, and health and education spending from the ILO and the World Bank/WHO, we analyze whether social spending moderates the association between economic globalization and inequality. The results confirm that economic globalization - especially economic flows - associates with higher income inequality, an effect driven by non-OECD countries. Health spending is strongly associated with lower inequality, but we find no robust evidence that any kind of social spending negatively moderates the association between economic globalization and inequality.
Subjects: 
Globalization
Social spending
Income inequality
JEL: 
I10
Document Type: 
Working Paper

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