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The Twin Effects of Globalization - Evidence from a Sample of Indian Manufacturing Firms

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  • Francesco Daveri
  • Paolo Manasse
  • Danila Serra

Abstract

Employees of globalized firms face a riskier menu of labor market outcomes. They face a more uncertain stream of earnings and riskier employment prospects. However, they may also have stronger incentives to train and upgrade their skills and/or may benefit from more rapid careers. Hence, the costs of uncertainty and the benefits of skill upgrading associated with globalization may be twin to each other. We provide statistical evidence of this so far neglected trade-off for a sample of Indian manufacturing firms.

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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3174.

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Date of creation: 2010
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Handle: RePEc:ces:ceswps:_3174

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Keywords: globalization; uncertainty; training; labor markets; India;

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References

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  1. Giorgio Barba Navaretti & Marzio Galeotti & Alessandra Tucci, 2002. "Do Not Get Trapped into Crossing: Indian Firms and Foreign Markets," Development Working Papers, Centro Studi Luca d\'Agliano, University of Milano 170, Centro Studi Luca d\'Agliano, University of Milano.
  2. Raymond Robertson, 2000. "Trade Liberalisation and Wage Inequality: Lessons from the Mexican Experience," The World Economy, Wiley Blackwell, Wiley Blackwell, vol. 23(6), pages 827-849, 06.
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Cited by:
  1. May Elsayyad & Kai A. Konrad, 2011. "Fighting Multiple Tax Havens," Working Papers, Max Planck Institute for Tax Law and Public Finance fighting_multiple_tax_hav, Max Planck Institute for Tax Law and Public Finance.

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