Trade and the political economy of redistribution

A-Tier
Journal: Journal of International Economics
Year: 2016
Volume: 98
Issue: C
Pages: 233-244

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper shows how international trade affects the support for policies which redistribute income between workers across sectors, and how the existence of such policies changes the support for trade liberalization. Workers, who are imperfectly mobile across sectors, vote on whether to subsidize ailing sectors, thereby redistributing income but also distorting the labor allocation. We present three main findings. First, redistributive policies are more “likely” to arise in a small open than in a closed economy for a broad range of parameters. Second, if a redistributive policy is adopted in both situations, income differences across sectors tend to be lower in the open economy. Third, the possibility to redistribute income across sectors raises the political support for trade liberalization in the first place.

Technical Details

RePEc Handle
repec:eee:inecon:v:98:y:2016:i:c:p:233-244
Journal Field
International
Author Count
2
Added to Database
2026-01-25