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The Twin Effects of Globalization

  • Francesco Daveri

    (University of Parma; IGIER)

  • Paolo Manasse

    (University of Bologna; IGIER)

  • Danila Serra

    (London School of Economics)

\'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.

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Paper provided by Centro Studi Luca d\'Agliano, University of Milano in its series Development Working Papers with number 171.

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Date of creation: 01 Nov 2002
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Handle: RePEc:csl:devewp:171
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