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The Twin Effects of Globalization

Francesco Daveri (), Paolo Manasse () and Danila Serra
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Danila Serra: London School of Economics

No 171, Development Working Papers from Centro Studi Luca d'Agliano, University of Milano

Abstract: \'Globalized\' workers enjoy a riskier, but potentially more rewarding, menu of labor market outcomes. This, so far overlooked, feature of globalization is documented here for a sample of Indian manufacturing Þrms. Firms subject to external exposure, be they exporting, import-competing or foreign-owned, indeed face higher earnings variability and job insecurity. At the same time, though, the employees of foreign-owned and import-competing firms are more frequently involved in training programs than employees of Þrms not subject to foreign competition. Similarly, the employees of exporting firms are promoted more frequently than otherwise. The \'bad\' and the \'good\' labormarket effects of globalization are thus twin to each other. Concentrating on just one side of the coin gives a misleading picture of globalization.

Date: 2002-11-01
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Working Paper: The Twin Effects of Globalization (2003) Downloads
Working Paper: The Twin Effects of Globalization (2003) Downloads
Working Paper: The twin effects of globalization (2003) Downloads
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