The Twin Effects of Globalization
AbstractEmployees of "globalized" firms face a riskier, but potentially more rewarding, menu of labor market outcomes. We document this neglected trade-off of globalization for a sample of Indian manufacturing firms. On the one hand, the employees of firms subject to foreign competition face a more uncertain stream of earnings and riskier employment prospects. On the other, they enjoy a more rapid career and/or have more opportunities to train and upgrade their skills. The negative uncertainty costs and the positive incentive 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 IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University in its series Working Papers with number 240.
Date of creation: 2003
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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.
- Francesco Daveri & Paolo Manasse & Danila Serra, 2002. "The Twin Effects of Globalization," Development Working Papers 171, Centro Studi Luca d\'Agliano, University of Milano.
- F. Daveri & P. Manasse & D. Serra, 2003. "The Twin Effects of Globalization," Working Papers 483, Dipartimento Scienze Economiche, Universita' di Bologna.
- 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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- Paolo Epifani, 2002.
"Trade Liberalization, Firm Performance and Labor Market Outcomes in the Developing World What Can We Learn From Micro-Level Data?,"
KITeS Working Papers
138, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Feb 2003.
- 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.
- Paolo EPIFANI, 2003. "Trade Liberalization, Firm Performance and Labor Market Outcomes in the Developing World, what Can We Learn from Micro-Level Data?," Rivista Italiana degli Economisti, SIE - Societa' Italiana degli Economisti (I), vol. 8(3), pages 455-486, December.
- 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 172, Centro Studi Luca d\'Agliano, University of Milano.
- Epifani, Paolo, 2003. "Trade liberalization, firm performance, and labor market outcomes in the developing world : what can we learn from micro-level data?," Policy Research Working Paper Series 3063, The World Bank.
- 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.
- Pranab Bardhan, 2006. "Globalization, Inequality, and Poverty," IDB Publications 9126, Inter-American Development Bank.
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