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The Twin Effects of Globalization

Author

Listed:
  • 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.

Suggested Citation

  • Francesco Daveri & Paolo Manasse & Danila Serra, 2002. "The Twin Effects of Globalization," Development Working Papers 171, Centro Studi Luca d'Agliano, University of Milano.
    • Handle: RePEc:csl:devewp:171
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    File URL: https://www.dagliano.unimi.it/media/WP2002_171.pdf
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    Cited by:

    1. Paolo Epifani, 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. Alvarado-Vargas, Marcelo J. & Hermans, Michel & Newburry, William, 2020. "What’s in it for me? Local employees’ anticipated career opportunities derived from firm internationalization," Journal of Business Research, Elsevier, vol. 117(C), pages 201-211.
    3. 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.
    4. Pranab Bardhan, 2006. "Globalization, Inequality, and Poverty," IDB Publications (Working Papers) 9126, Inter-American Development Bank.
    5. Bardhan, Pranab, 2006. "Globalization, Inequality, and Poverty," IDB Publications (Working Papers) 2329, Inter-American Development Bank.

    More about this item

    JEL classification:

    • 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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