IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

Globalization and the Labor Market

  • MartÌn Rama

Does globalization affect labor market outcomes? Can labor market policies mitigate or offset the effects? Would these policies have important side effects on efficiency? This article addresses these questions through an analytical survey of the literature, including several studies under preparation. Some of the studies use new cross-country databases of wages and other labor market indicators. Although all the answers should be considered tentative, some patterns emerge. Different aspects of globalization have different consequences. In the short run wages fall with openness to trade and rise with foreign direct investment. But after a few years the effect of trade on wages becomes positive. Foreign direct investment also increases (substantially) the returns to education. Social protection programs are effective in reducing inequality. Minimum wages, public sector employment, and core labor standards are not. Between these two extremes, collective bargaining works mainly for the middle class. Social protection programs do not adversely affect efficiency, but high public sector employment and trade union membership are associated with weaker performance in the context of adjustment. Copyright 2003, Oxford University Press.

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Article provided by World Bank Group in its journal The World Bank Research Observer.

Volume (Year): 18 (2003)
Issue (Month): 2 ()
Pages: 159-186

in new window

Handle: RePEc:oup:wbrobs:v:18:y:2003:i:2:p:159-186
Contact details of provider: Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Phone: (202) 477-1234
Fax: 01865 267 985
Web page:

More information through EDIRC

Order Information: Web:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:oup:wbrobs:v:18:y:2003:i:2:p:159-186. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press)

or (Christopher F. Baum)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.