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Globalization and Inter-occupational Inequality in a Panel of Countries: 1983-2003

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  • Munshi, Farzana

    () (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

How does globalization affect inter-occupational wage inequality within countries? This paper empirically examines this issue by focusing on two dimensions of globalization, openness to trade and openness to capital, using a relatively new dataset on occupational wages. Estimates from dynamic models for 52 countries for the 1983-2002 period suggest that openness to trade contributes to an increase in occupational wage inequality within developed countries, but that the effect diminishes with an increased level of development. In the context of developing countries, the results suggest that the effect of openness to trade on wage inequality is insignificant and does not vary with the level of development. Our results also suggest that openness to capital does not affect occupational wage inequality in either developed or developing countries.

Suggested Citation

  • Munshi, Farzana, 2008. "Globalization and Inter-occupational Inequality in a Panel of Countries: 1983-2003," Working Papers in Economics 302, University of Gothenburg, Department of Economics.
  • Handle: RePEc:hhs:gunwpe:0302
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    File URL: http://hdl.handle.net/2077/10025
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    Cited by:

    1. Ian Harper, 2010. "Globalization and Labor Markets: Developments in the Asia-Pacific," Chapters,in: Globalization and Economic Integration, chapter 9 Edward Elgar Publishing.

    More about this item

    Keywords

    openness to trade; openness to capital; foreign direct investment; occupational wage inequality; panel data; dynamic model;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F15 - International Economics - - Trade - - - Economic Integration
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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