Globalization, the jobs ladder and economic mobility

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.

Globalization, the Two-edged Sword Phenomenon—Reflections of Its Impact on Global Peace and Security

“…The survey revealed that the majority of the respondents (86.9) agree that globalization is a concept of duality, having both merits and demerits. (d) Benefits from globalization far outweigh its shortfalls and excesses, corroborating the assertion of Davidson, et al (2020) that globalization by all standards has contributed more to global development. While 60.8% of respondents suggest that the benefits of globalization far outweigh the demerits, 39.2% disagree.…”

“…9% think otherwise as suggested by Kay (2004). The test reveals that 86.9 percent of respondents overwhelmingly agree that globalization is actually a two-edged sword that cuts from both sides to that end bringing both benefits and burdens to humanity in its implementation (Davidson, et al, 2020;Weidenbaum & Batterson, 2001). The author accepts the result that is in keeping with the worldview since the phenomenon has inured to global development amidst the shortfalls.…”

“…While 52.1% were of the notion that there is a relationship between the two concepts, 47.9% think otherwise. According to the former, activities of globalization do promote global peace through bilateral trade interdependence and the economic integration of countries (Campbell, 2004;Davidson, et al, 2020). Campbell (2004) describes as one of the greatest roles of globalization.…”

“…Third, financial globalization refers to the ease at which money and capital are transferred around the world within the tenets of globalization (Campbell, 2004;Davidson, et al, 2020). The growth of stock exchanges and the internationalization of financial markets has hugely promoted this aspect of globalization, where money is easily transferred across global borders, thus making it cheaper and easier for foreign companies to invest in host countries (Davidson, et al, 2020).…”

“…Sixth, cultural globalization involves the spread and mixing of cultures of peoples of all races around the world into what is called a global culture (Davidson, et al, 2020;Tzanelli, 2007). Great as it may sound, this process favors the homogenization of the cultures of dominant nations across the globe.…”