In the first global century before 1914, trade and especially migration had profound effects on both low-wage, labor abundant Europe and the high-wage, labor scarce New World. Those global forces contributed to a reduction in unskilled labor scarcity in the New World and to a rise in unskilled labor scarcity in Europe. Thus, it contributed to rising inequality in overseas countries, like the United States, and falling inequality in most of Europe. Falling unskilled labor scarcity and rising skill scarcity contributed to the high school revolution in the US. Rising unskilled scarcity also contributed to the primary schooling and literacy revolution in Europe. Under what conditions would we expect the same responses to globalization in today’s world? This paper argues that modern debates about inequality and schooling responses to globalization should pay more attention to history.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
12553.
Length: Date of creation: Oct 2006 Date of revision: Handle: RePEc:nbr:nberwo:12553
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Find related papers by JEL classification: D3 - Microeconomics - - Distribution F1 - International Economics - - Trade I2 - Health, Education, and Welfare - - Education J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies N3 - Economic History - - Labor and Consumers, Demography, Education, Income, and Wealth
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