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The Twin Effects of Globalization

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  • Francesco Daveri

    (University of Parma; IGIER)

  • Paolo Manasse

    (University of Bologna; IGIER)

  • Danila Serra

    (London School of Economics)

Abstract

\'Globalized\' workers enjoy a riskier, but potentially more rewarding, menu of labor market outcomes. This, so far overlooked, feature of globalization is documented here for a sample of Indian manufacturing Þrms. Firms subject to external exposure, be they exporting, import-competing or foreign-owned, indeed face higher earnings variability and job insecurity. At the same time, though, the employees of foreign-owned and import-competing firms are more frequently involved in training programs than employees of Þrms not subject to foreign competition. Similarly, the employees of exporting firms are promoted more frequently than otherwise. The \'bad\' and the \'good\' labormarket effects of globalization are thus twin to each other. Concentrating on just one side of the coin gives a misleading picture of globalization.

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Bibliographic Info

Paper provided by Centro Studi Luca d\'Agliano, University of Milano in its series Development Working Papers with number 171.

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Date of creation: 01 Nov 2002
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Handle: RePEc:csl:devewp:171

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Cited by:
  1. Epifani Paolo, 2003. "Trade liberalization, Firm Performances and Labor Market Outcomes in the Developing World, what Can We Learn From Micro-Level Data?," Rivista italiana degli economisti, Società editrice il Mulino, issue 3, pages 455-486.
  2. Paolo Epifani, 2002. "Trade Liberalization, Firm Performance and Labour Market Outcomes in the Developing World: What Can We Learn from Micro-LevelData?," Development Working Papers, Centro Studi Luca d\'Agliano, University of Milano 172, Centro Studi Luca d\'Agliano, University of Milano.
  3. Pranab Bardhan, 2006. "Globalization, Inequality, and Poverty," IDB Publications 9126, Inter-American Development Bank.
  4. Erkan Erdem & James Tybout, 2003. "Trade Policy and Industrial Sector Responses: Using Evolutionary Models to Interpret the Evidence," NBER Working Papers 9947, National Bureau of Economic Research, Inc.

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