The Effect of Globalization on Wages in the Advanced Economies
April 1, 1997
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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.
Subject: Imports, Income inequality, International trade, Labor, Labor demand, Labor markets, National accounts, Wages
Keywords: capital mobility, Europe, factor, factor price, factor price elasticities of demand, firm, Global, Globalization, import competition, Imports, Income inequality, job market, Krugman terms, Labor demand, Labor markets, North America, per capita income, price equalization theorem, product price, product price change, rate of return, trade, trade and wages, trade competition, trade economist, wage, wage differential, Wages, WP
Pages:
33
Volume:
1997
DOI:
Issue:
043
Series:
Working Paper No. 1997/043
Stock No:
WPIEA0431997
ISBN:
9781451846294
ISSN:
1018-5941
