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Globalization and Human Capital Empowerment

Author

Listed:
  • Dalia Marin

    (LMU - Ludwig Maximilian University [Munich] = Ludwig Maximilians Universität München)

  • Thierry Verdier

    (PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

Many experts have identified globalization as the new way in which firms organize their activities and the emergence of talent as the new stakeholder in the firm. This paper examines the role of trade integration in the changing nature of the corporation. International trade leads to a 'war for talent' which makes it more likely that an organizational equilibrium emerges in the integrated world economy in which control is delegated to lower levels of the firm's hierarchy empowering human capital. Furthermore, trade integration is shown to lead to waves of decentralization and to convergence in corporate cultures across countries.

Suggested Citation

  • Dalia Marin & Thierry Verdier, 2012. "Globalization and Human Capital Empowerment," PSE-Ecole d'économie de Paris (Postprint) halshs-00754596, HAL.
    • Handle: RePEc:hal:pseptp:halshs-00754596
    DOI: 10.1016/j.jinteco.2011.10.005
    as

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