The Twin Effects of Globalization
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 InfoPaper provided by Centro Studi Luca d\'Agliano, University of Milano in its series Development Working Papers with number 171.
Date of creation: 01 Nov 2002
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Other versions of this item:
- Daveri, Francesco & Manasse, Paolo & Serra, Danilo, 2003. "The twin effects of globalization," Policy Research Working Paper Series 3154, The World Bank.
- F. Daveri & P. Manasse & D. Serra, 2003. "The Twin Effects of Globalization," Working Papers 483, Dipartimento Scienze Economiche, Universita' di Bologna.
- Francesco Daveri & Paolo Manasse & Danila Serra, 2003. "The Twin Effects of Globalization," Working Papers 240, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
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