Working Paper

Globalization and Social Justice in OECD Countries

Björn Kauder, Niklas Potrafke
CESifo, Munich, 2015

CESifo Working Paper No. 5210

Social justice is a topic of importance to social scientists and also political decision makers. We examine the relationship between globalization and social justice as measured by a new indicator for 31 OECD countries. The results show that countries that experienced rapid globalization enjoy social justice. When the KOF index of globalization increases by one standard deviation, the social justice indicator increases by about 0.4 points (on a scale from 1 to 10). The policy implication is that permitting a national economy to become globally integrated is consistent with and promotes social justice.

CESifo Category
Public Choice
Social Protection
Keywords: globalization, social justice, economic integration
JEL Classification: D630, F610