abstract: 'Does globalization affect labor market outcomes? Can labor market

  policies mitigate or offset the effects? Would these policies have

  important side effects on efficiency? This article addresses these

  questions through an analytical survey of the literature, including

  several studies under preparation. Some of the studies use new

  cross-country databases of wages and other labor market indicators.

  Although all the answers should be considered tentative, some patterns

  emerge. Different aspects of globalization have different consequences.

  In the short run wages fall with openness to trade and rise with foreign

  direct investment. But after a few years the effect of trade on wages

  becomes positive. Foreign direct investment also increases

  (substantially) the returns to education. Social protection programs are

  effective in reducing inequality. Minimum wages, public sector

  employment, and core labor standards are not. Between these two

  extremes, collective bargaining works mainly for the middle class.

  Social protection programs do not adversely affect efficiency, but high

  public sector employment and trade union membership are associated with

  weaker performance in the context of adjustment.'
author: Rama, M
author_list:
- family: Rama
  given: M
da: '2023-09-28'
doi: 10.1093/wbro/lkg010
files: []
issn: 0257-3032
journal: WORLD BANK RESEARCH OBSERVER
keywords-plus: 'PUBLIC-SECTOR; TRADE LIBERALIZATION; INCOME INEQUALITY; WAGE INEQUALITY;

  MINIMUM-WAGES; INVESTMENT; EDUCATION; POLICIES; IMPACT; MEXICO'
language: English
month: FAL
number: '2'
number-of-cited-references: '51'
pages: 159-186
papis_id: 69d4ba36b7a48bf1458f03f4195a915a
ref: Rama2003globalizationlabor
times-cited: '21'
title: Globalization and the labor market
type: article
unique-id: WOS:000187228600002
usage-count-last-180-days: '0'
usage-count-since-2013: '16'
volume: '18'
web-of-science-categories: Development Studies; Economics
year: '2003'