The Twin Effects of Globalization

The Twin Effects of Globalization

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...

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Bibliographic Details
Main Authors: Daveri, Francesco, Manasse, Paolo, Serra, Danilo
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
AGRICULTURE
BALANCE OF PAYMENTS
CAPITAL GOODS
CAPITAL MARKETS
COMPARATIVE ADVANTAGE
COMPETITORS
CONSUMERS
CORPORATIONS
DUMPING
ECONOMETRIC ANALYSIS
ECONOMIC INTEGRATION
ELASTICITY
ELASTICITY OF SUBSTITUTION
EMPLOYMENT
EQUILIBRIUM
EXPANSION
EXPECTED UTILITY
EXPORTS
FIRM SIZE
FIRMS
FOREIGN COMPETITION
GDP
GROWTH RATE
HUMAN CAPITAL
IMPERFECT COMPETITION
IMPORT QUOTAS
IMPORTS
INCENTIVE EFFECTS
INCOME
INSURANCE
JOINT VENTURES
LABOR MARKETS
LEGISLATION
LEISURE
LICENSING
MARGINAL PRODUCT
MARGINAL VALUE
MARKET COMPETITION
MARKET LIBERALIZATION
OWNERSHIP STRUCTURE
PRESENT VALUE
PRODUCERS
PRODUCTION FUNCTION
PRODUCTIVITY
PRODUCTIVITY GROWTH
PUBLIC ENTERPRISES
PURCHASING POWER
REAL WAGES
RISK AVERSION
SUPPLIERS
TARIFF BARRIERS
TAX RATES
TECHNOLOGY TRANSFERS
TERMS OF TRADE
TIME SERIES
TRADE LIBERALIZATION
UNEMPLOYMENT
UTILITY FUNCTION
WAGE DIFFERENTIALS
WAGE RATES
WAGES
WORLD TRADE ORGANIZATION GLOBALIZATION
BUSINESS ENVIRONMENT
RISK MANAGEMENT
LABOR MARKET NEXUS
MANUFACTURING ENTERPRISES
CASE STUDIES
FOREIGN INVESTMENTS
COMPETITION UNFAIR
EARNINGS CAPACITY
EMPLOYEE RIGHTS
CAREER DEVELOPMENT
SKILLS
GLOBALIZATION
WORLD TRADE ORGANIZATION
WTO
trade and wages
Online Access:http://documents.worldbank.org/curated/en/2003/10/2778573/twin-effects-globalization
http://hdl.handle.net/10986/18049
Description
Summary: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.

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