The twin effects of globalization

Francesco Daveri, Paolo Manasse and Danilo Serra

No 3154, Policy Research Working Paper Series from The World Bank

Abstract: Employees of"globalized"firms face a riskier, but potentially more rewarding, menu of labor market outcomes. The authors document this neglected tradeoff of globalization for a sample of Indian manufacturing firms. On the one hand, the employees of firms subject to foreign competition face a more uncertain stream of earnings and riskier employment prospects. On the other hand, they enjoy a more rapid career growth and have more opportunities to train and upgrade their skills. The negative uncertainty costs and the positive incentive effects of globalization are thus twin to each other. Concentrating on just one side of the coin gives a misleading picture of globalization.

Keywords: Small Scale Enterprise; Environmental Economics&Policies; Microfinance; Labor Policies; Economic Theory&Research; Environmental Economics&Policies; Economic Theory&Research; Microfinance; Private Participation in Infrastructure; Small Scale Enterprise (search for similar items in EconPapers)
Date: 2003-10-01
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Citations: View citations in EconPapers (7)

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Related works:
Working Paper: The Twin Effects of Globalization (2003)
Working Paper: The Twin Effects of Globalization (2003)
Working Paper: The Twin Effects of Globalization (2002)
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