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Globalization and Investment in Human Capital

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  • Daniel C. Hickman
  • William W. Olney

Abstract

The authors examine the impact of globalization on the domestic labor market for low-skilled workers. Whereas existing research typically focuses on the effects on labor market outcomes such as wages and employment, the authors of this paper examine whether American workers respond to globalization by increasing their investment in human capital. Using both Census data and the Integrated Postsecondary Education Data System (IPEDS) for the period 2000-2007, they measure the extent to which offshoring and immigration affect enrollment at institutions of higher education. Results indicate that both offshoring and immigration increase enrollment at community colleges but not at other types of institutions, particularly among older, non-traditional age students. The authors conclude that U.S. workers are indeed responding to globalization by acquiring the skills necessary to compete in a global economy.

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Bibliographic Info

Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

Volume (Year): 64 (2011)
Issue (Month): 4 (July)
Pages: 654-672

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Handle: RePEc:ilr:articl:v:64:y:2011:i:4:p:654-672

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  1. Fiorella De Fiore, 1998. "The Transmission of Monetary Policy in Israel," IMF Working Papers 98/114, International Monetary Fund.
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Cited by:
  1. Jamilov, Rustam, 2012. "Channels of Monetary Transmission in the CIS," MPRA Paper 39568, University Library of Munich, Germany.
  2. Petri Böckerman & Mika Maliranta, 2013. "Outsourcing, Occupational Restructuring, and Employee Well-Being: Is There a Silver Lining?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 52(4), pages 878-914, October.
  3. William W. Olney, 2013. "The Composition of Exports and Human Capital Acquisition," Department of Economics Working Papers 2013-18, Department of Economics, Williams College, revised Sep 2013.
  4. Carl Davidson & Nicholas Sly, 2013. "A Simple Model of Globalization, Schooling and Skill Acquisition," CESifo Working Paper Series 4394, CESifo Group Munich.

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