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Globalized Production: Structural Challenges for Developing Country Workers

In: Labor and the Globalization of Production

Author

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  • William Milberg

Abstract

According to the standard theory of international trade, trade liberalization will result in the equalization of wages globally (the factor price equalization effect) and a reduction in wage inequality in countries that are abundant in low-skill labor (the Stolper-Samuelson effect). Decades of trade liberalization, and ten years after the formation of a World Trade Organization with liberalization of trade as its main goal, it would appear that neither of these predictions has been borne out.

Suggested Citation

  • William Milberg, 2004. "Globalized Production: Structural Challenges for Developing Country Workers," Palgrave Macmillan Books, in: William Milberg (ed.), Labor and the Globalization of Production, chapter 1, pages 1-18, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-52396-8_1
    DOI: 10.1057/9780230523968_1
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