The Effect of Globalization on Wages in the Advanced Economies

Author/Editor:

Phillip L Swagel ; Matthew J. Slaughter

Publication Date:

April 1, 1997

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper examines the effect of globalization on labor markets in the advanced economies, focusing particularly on the claim that increased economic integration has widened the gap between the wages of more skilled and less skilled workers. The broad consensus of research is that globalization, both in terms of increased trade as well as increased capital mobility and foreign direct investment, has had only a modest effect on wages. Instead, changes in technology have led to a pervasive shift in demand for labor that has favored skilled workers to the detriment of less skilled workers.

Series:

Working Paper No. 1997/043

Subject:

Imports Income inequality International trade Labor Labor demand Labor markets National accounts Wages

English

Publication Date:

April 1, 1997

ISBN/ISSN:

9781451846294/1018-5941

Stock No:

WPIEA0431997

Pages:

33

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