Globalisation, Employment, and Wage Rate: What Does Literature Tell Us?

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Globalisation, Employment, and Wage Rate: What Does Literature Tell Us?

Author Info

Yiping Zhu () (Universität Duisburg-Essen)

Abstract

This paper provides a literature review on the labor market outcome of international trade and outsourcing trends in developed countries, focusing on employment, wage rates, and wage dispersions. However, the literature offers ambiguous answers. International trade and outsourcing are examined not to be the determinant force of labour market movements. It tends to add to rising inequality and lowering the demand for low-skilled workers in Anglo-Saxon economies, while there is no clear-cut result for continental Europe. It induces skill-biased wage differentials and cross-sector change. Causality of globalisation effects on labour market and the inter-sectoral spill-over effects are underappreciated.

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Paper provided by IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute in its series IMK Working Paper with number 07-2008.

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Length: 21 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:imk:wpaper:7-2008

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Find related papers by JEL classification:
F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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Other versions:
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Other versions:
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Other versions:
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Other versions:
- Kei-Mu Yi, 2000. "Can vertical specialization explain the growth of world trade?," Staff Reports 96, Federal Reserve Bank of New York. [Downloadable!]
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Other versions:
- Ingo Geishecker & Holger Görg & Jakob Roland Munch, . "Do Labour Market Institutions Matter? Micro-level Wage Effects of International Outsourcing in Three European Countries," Discussion Papers 07/42, University of Nottingham, GEP. [Downloadable!]
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