IDEAS home Printed from https://ideas.repec.org/a/agr/journl/v3(636)y2023i3(636)p333-342.html
   My bibliography  Save this article

The impact of globalization on labour market specially focusing on wage inequality and job displacement. A theoretical analysis

Author

Listed:
  • Ananya GOGOI

    (Banaras Hindu University, India)

Abstract

The paper analyses the impact of globalization on the labour market, with a specific focus on wage inequality and job displacement. Globalization increases competitiveness, which breeds income inequality and job relocation. Technological change has resulted in a widespread shift in labour demand, favouring skilled workers at the expense of less skilled ones. Around the world, significant numbers of jobs have been eliminated due to cyclical downturns as well as structural changes brought on by changes in consumer demand, trade patterns, technology change, etc. Loss of employment has a detrimental effect on morality, consumption and health. Understanding the advantages and downsides of prospective public policy responses in the context of these consequences is essential. The paper also addresses potential strategies to deal with the challenges it brings. By throwing light on these concerns, the study aims to enhance a better understanding of the effects of globalization on the labour market and provide information for policy discussions aimed at creating a more equitable and sustainable future for workers.

Suggested Citation

  • Ananya GOGOI, 2023. "The impact of globalization on labour market specially focusing on wage inequality and job displacement. A theoretical analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(3(636), A), pages 333-342, Autumn.
    • Handle: RePEc:agr:journl:v:3(636):y:2023:i:3(636):p:333-342
    as

    Download full text from publisher

    File URL: http://store.ectap.ro/articole/1695.pdf
    Download Restriction: no
    File URL: http://www.ectap.ro/articol.php?id=1695&rid=152
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. David H. Autor & David Dorn & Gordon H. Hanson, 2013. "The China Syndrome: Local Labor Market Effects of Import Competition in the United States," American Economic Review, American Economic Association, vol. 103(6), pages 2121-2168, October.
    2. Elhanan Helpman & Oleg Itskhoki & Stephen Redding, 2010. "Inequality and Unemployment in a Global Economy," Econometrica, Econometric Society, vol. 78(4), pages 1239-1283, July.
    3. Robert C. Feenstra, 1999. "Discrepancies in International Data: An Application to China-Hong Kong Entrepot Trade," American Economic Review, American Economic Association, vol. 89(2), pages 338-343, May.
    4. Gözgör, Giray & Bilgin, Mehmet Huseyin & Zimmermann, Klaus F., 2019. "Public employment decline in developing countries in the 21st century: The role of globalization," Economics Letters, Elsevier, vol. 184(C).
    5. Pinelopi Koujianou Goldberg & Nina Pavcnik, 2007. "Distributional Effects of Globalization in Developing Countries," Journal of Economic Literature, American Economic Association, vol. 45(1), pages 39-82, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Markus Brueckner & Ngo Van Long & Joaquin L. Vespignani, 2020. "Non-Gravity Trade," Globalization Institute Working Papers 388, Federal Reserve Bank of Dallas.
    2. Taiji Furusawa & Hideo Konishi & Duong Lam Anh Tran, 2020. "International Trade and Income Inequality," Scandinavian Journal of Economics, Wiley Blackwell, vol. 122(3), pages 993-1026, July.
    3. David Hummels & Jakob R. Munch & Chong Xiang, 2018. "Offshoring and Labor Markets," Journal of Economic Literature, American Economic Association, vol. 56(3), pages 981-1028, September.
    4. Clément Malgouyres, 2017. "The Impact Of Chinese Import Competition On The Local Structure Of Employment And Wages: Evidence From France," Journal of Regional Science, Wiley Blackwell, vol. 57(3), pages 411-441, June.
    5. Admasu Shiferaw & Degol Hailu, 2016. "Job creation and trade in manufactures: industry-level analysis across countries," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-36, December.
    6. Costinot, Arnaud & Adao, Rodrigo & Carrillo, Paul & Donaldson, Dave & Pomeranz, Dina, 2020. "International Trade and Earnings Inequality: A New Factor Content Approach," CEPR Discussion Papers 15598, C.E.P.R. Discussion Papers.
    7. Antràs, Pol & de Gortari, Alonso & Itskhoki, Oleg, 2017. "Globalization, inequality and welfare," Journal of International Economics, Elsevier, vol. 108(C), pages 387-412.
    8. Jean‐Noël Barrot & Erik Loualiche & Matthew Plosser & Julien Sauvagnat, 2022. "Import Competition and Household Debt," Journal of Finance, American Finance Association, vol. 77(6), pages 3037-3091, December.
    9. Blanchard, Emily & Willmann, Gerald, 2016. "Trade, education, and the shrinking middle class," Journal of International Economics, Elsevier, vol. 99(C), pages 263-278.
    10. Giorgia Giovannetti & Enrico Marvasi & Arianna Vivoli, 2020. "The asymmetric effects of twenty years of tariff reforms on Egyptian workers," Working Papers LuissLab 20156, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    11. L. Alan Winters & Antonio Martuscelli, 2014. "Trade Liberalization and Poverty: What Have We Learned in a Decade?," Annual Review of Resource Economics, Annual Reviews, vol. 6(1), pages 493-512, October.
    12. Pavcnik, Nina & Goldberg, Pinelopi, 2016. "The Effects of Trade Policy," CEPR Discussion Papers 11104, C.E.P.R. Discussion Papers.
    13. Muendler, Marc-Andreas, 2017. "Trade, technology, and prosperity: An account of evidence from a labor-market perspective," WTO Staff Working Papers ERSD-2017-15, World Trade Organization (WTO), Economic Research and Statistics Division.
    14. Dix-Carneiro, Rafael & Kovak, Brian K., 2023. "Globalization and Inequality in Latin America," IZA Discussion Papers 16363, Institute of Labor Economics (IZA).
    15. Guren, Adam & Hémous, David & Olsen, Morten, 2015. "Trade dynamics with sector-specific human capital," Journal of International Economics, Elsevier, vol. 97(1), pages 126-147.
    16. Chuantao Cui & Leona Shao‐Zhi Li & Daoju Peng, 2021. "Value‐added exports and the skill premium: Evidence from China’s international and regional production networks," Pacific Economic Review, Wiley Blackwell, vol. 26(2), pages 183-211, May.
    17. Elias Dinopoulos & Bulent Unel, 2017. "Managerial capital, occupational choice and inequality in a global economy," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(2), pages 365-397, May.
    18. Markus Brueckner & Ngo Van Long & Joaquin Vespignani, 2022. "Trade, education, and income inequality," Applied Economics, Taylor & Francis Journals, vol. 54(40), pages 4608-4631, August.
    19. Swati Dhingra & Gianmarco Ottaviano & Veronica Rappoport & Thomas Sampson & Catherine Thomas, 2018. "UK trade and FDI: A post‐Brexit perspective," Papers in Regional Science, Wiley Blackwell, vol. 97(1), pages 9-24, March.
    20. Helpman, Elhanan, 2016. "Globalization and Wage Inequality," CEPR Discussion Papers 11701, C.E.P.R. Discussion Papers.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:agr:journl:v:3(636):y:2023:i:3(636):p:333-342. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mircea Dinu (email available below). General contact details of provider: https://edirc.repec.org/data/agerrea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.