Globalization, the Jobs Ladder and Economic Mobility

Carl Davidson (), Fredrik Heyman, Steven Matusz, Fredrik Sjöholm and Susan Chun Zhu ()
Additional contact information
Carl Davidson: Department of Economics, Postal: Michigan State University, East Lansing

No 1249, Working Paper Series from Research Institute of Industrial Economics

Abstract: Globalization affects the mix of jobs available in an economy and the rate at which workers gain skills. We develop a model in which firms differ in terms of productivity and workers differ in skills, and use the model to examine how globalization affects the wage distribution and the career path of workers as they move up the jobs ladder. We calibrate the model using many of the same parameters and targeting the same moments of the US economy as Melitz and Redding (2015) and then investigate the impact of globalization. Our results indicate that although falling trade costs results in greater wage inequality, it also leads to a wider path up the jobs ladder and less time spent in entry level jobs.

Keywords: Job Ladders; Globalization; Wages; Inequality; Export (search for similar items in EconPapers)
JEL-codes: F10 F20 J30 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2018-11-19, Revised 2020-02-21
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.ifn.se/wfiles/wp/wp1249.pdf Full text (application/pdf)

Related works:
Journal Article: Globalization, the jobs ladder and economic mobility (2020)
Working Paper: Globalization, the Jobs Ladder and Economic Mobility (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:iuiwop:1249

Access Statistics for this paper

More papers in Working Paper Series from Research Institute of Industrial Economics Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Elisabeth Gustafsson ().