Globalization and the Labor Market
Does globalization affects labor market outcomes? Can labor market policies mitigate or offset the effects? Would these polices have important side effect on efficiency this article addresses these questions through an analytical survey of the lite...
| Main Author: | |
|---|---|
| Format: | Journal Article |
| Language: | English en_US |
| Published: |
World Bank
2013
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2013/01/17548107/globalization-labor-market http://hdl.handle.net/10986/16415 |
| Summary: | Does globalization affects labor market
outcomes? Can labor market policies mitigate or offset the
effects? Would these polices have important side effect on
efficiency this article addresses these questions through an
analytical survey of the literature, including several
studies under preparation. Some of the studies use new
cross-country database of wages and other labor market
indicators. Although all the answer should be considered
tentative some patterns emerge. Different aspects of
globalization have different consequence. In the short run
wages fall with openness to trade and rise with foreign
direct investment also increase (substantially) the returns
to education. Social protection programs are effective in
reducing inequality. Minimum wages, public sector
employment, and core labor standards are not. Between these
two extremes, collective bargain works mainly for the middle
class. Social protection programs do not adversely affect
efficiency, but high public sector employment and trade
union membership are associated with weaker performance in
the context of adjustment. |
|---|