Published Online: Apr 07, 2019
Page range: 3 - 11
Received: Nov 23, 2018
Accepted: Jan 15, 2019
DOI: https://doi.org/10.18559/ebr.2019.1.1
Keywords
© 2019 Udo Broll et al., published by Sciendo
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.
In our paper a very simple model is used to analyze the relationship between trade globalization, inequality and economic policy. Although the local government exclusively maximizes the welfare of the marginalized (unemployed) people, the inequality of relative consumption between employed and unemployed will increase with intensified trade liberalization. In contrast to this result the relative income inequality may fall in certain situations.