Globalization and Inequality in Advanced Economies: Trade, Tax Base Mobility, and Policy Implications

Introduction
Contents
Acronyms
List of Figures
Chapter 1: Globalization and Inequality: The Facts
	1.1 Trade, Offshoring, FDI and Inequality
		1.1.1 Changes in Trade Structure
		1.1.2 FDI and Multinationalization of Firms
		1.1.3 Patterns of Rising Inequality
	1.2 Migration, Mobility of Tax Bases and Decrease in Tax Progressivity
		1.2.1 Decrease in Mobility Costs
		1.2.2 Immigration
		1.2.3 Changes in the Tax Structures
	1.3 Public Social Expenditure and Public Debt
		1.3.1 General Increase in Public Social Expenditures
		1.3.2 Changes in Redistribution
		1.3.3 Increase in Public Debts
	1.4 Unemployment, Skill Endowment and Labour Market Rigidity
		1.4.1 Unemployment
		1.4.2 Skill Endowment
		1.4.3 Labour Cost and Labour Market Rigidities
			1.4.3.1 Difference in Labour Costs Between Advanced and Emerging Countries
			1.4.3.2 Labour Market Institutions
	1.5 Major Stylized Facts
Chapter 2: Trade and Inequality
	2.1 Comparative Advantage, North-South Trade and Inequality
		2.1.1 The North-South Heckscher-Ohlin Approach and its Shortcomings
			2.1.1.1 The Basic NS-HOS Model and Inequality
			2.1.1.2 Unconfirmed Predictions
		2.1.2 Divergence in Factor Endowments, Non-equalization in Factor Price and Stages of Globalization
		2.1.3 Differences in Productivity and Technology
		2.1.4 Labour Market Failures and Unemployment
			2.1.4.1 Institutional Constraint and the Inequality-Unemployment Trade-Off
			2.1.4.2 Impact of a Minimum Wage and Extension to Downward-Rigid Wages
			2.1.4.3 North-South Trade, Efficiency Wage and Unemployment
		2.1.5 A Large Number of Countries and Sectors
		2.1.6 Capital and Capital Mobility
	2.2 Offshoring and Global Value Chains
		2.2.1 Offshoring in Intermediate Goods
		2.2.2 Offshoring in Individual Tasks
	2.3 Trade and Technology Interplay
		2.3.1 Capital-Skill Complementarity
		2.3.2 Property Rights Enforcement and Globalization-Driven-Biased Technical Change
	2.4 Polarization
		2.4.1 Skill Upgrading in Emerging Countries and Polarization
		2.4.2 Globalization-Induced Education Decisions and Polarization
		2.4.3 Empirical Evidence
	2.5 Globalization and the Superstars
	2.6 Empirical Evidence on Trade and Inequality
	2.7 Major Lessons on Trade and Inequality
	Appendices
		Appendix A: The Basic North-South HOS Model
			Autarky
			North-South Openness
				The Integrated Global Economy
				The Diversification Cone
		Appendix B: The NS-HOS Model with Fair Wage
			North and South Produce Both Goods
			North Produces Both Goods and South Good l Only
			North Produces Good h Only
		Appendix C: The NS-HOS Model with Offshoring
		Appendix D: A Basic Model with Offshoring in Tasks
			Unskilled Tasks Are Produced in Both Areas
				The North Skill Premium
				Prices
				Real Wages
				The Real Income per Head
			Unskilled Tasks Are only Produced in the South
			Labour Market Imperfections
Chapter 3: Factor Mobility, Tax Base Mobility and Tax Competition
	3.1 Mobility of Tax Bases, Tax Competition and Race to the Bottom
		3.1.1 Mobility of Tax Bases and Globalization
		3.1.2 Tax Competition and Race to the Bottom
	3.2 Corporate Tax Competition
		3.2.1 Theoretical Approaches
		3.2.2 Empirical Evidence
	3.3 Income Tax Competition
		3.3.1 Theoretical Approaches
		3.3.2 Empirical Evidence
	3.4 Tax Evasion
		3.4.1 Tax Evasion: Basic Mechanisms
		3.4.2 Tax Evasion: Weight and Impact
	3.5 Major Lessons on Tax Base Mobility, Tax Competition and Tax Evasion
	Appendix: Mobility of Tax Bases and Race to the Bottom
		Source-Based Taxation
		Resident-Based Taxation
Chapter 4: Anti-inequality Policies and Globalization
	4.1 Labour Market Institutions and the Inequality-Unemployment Trade-Off
		4.1.1 The Inequality-Unemployment Trade-Off
		4.1.2 Globalization and Unionization
	4.2 Progressivity-Redistribution Trade-Off, Middle-Class Curse and Social Democracy Curse
		4.2.1 Middle-Class Curse and the Progressivity-Redistribution Trade-Off
		4.2.2 Social Democracy Curse and the Rise of Populism
	4.3 Public Deficit and Debt
	4.4 Globalization, Education and Inequality
		4.4.1 The `Incentive Effect´
		4.4.2 The `Cost of Education´ Effect
		4.4.3 Total Effect and Policy Implications
	4.5 Major Lessons on Globalization and Anti-inequality Policies
	Appendices
		Appendix A: The Monopoly Union Model
		Appendix B: The Efficient Bargaining Model
			Bargaining Without Globalization
			Bargaining with Globalization
		Appendix C: Impact of Globalization on Education
Chapter 5: Further Researches and Policy Implications
	5.1 General Diagnosis and Implications for Researches
		5.1.1 General Diagnosis
		5.1.2 Implication for Researches on the Globalization-Inequality Relationship
			5.1.2.1 Trade and FDI
			5.1.2.2 Other Components of Globalization
			5.1.2.3 Synthetic Indicators of Globalization and Meta-analyses
			5.1.2.4 Changing Policies and Institutions and Alternatives to Inequality
	5.2 New Fields of Research
		5.2.1 Posted Workers
		5.2.2 Global Value Chains and Increasing Economic Risks
		5.2.3 Education and the Emergence of a Globalized Elite
	5.3 Globalization-Consistent Public Policies
		5.3.1 Conditional Provision of Public Services and Social Advantages
		5.3.2 Globalization-Consistent Taxation
Conclusion
References
Author Index
Subject Index