Essays on the Impact of Globalization on Labor Markets

Essays on the Impact of Globalization on Labor Markets PDF Author: Iwao Tanaka
Publisher:
ISBN:
Category :
Languages : en
Pages : 330

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Essays on the Impact of Globalization on Labor Markets

Essays on the Impact of Globalization on Labor Markets PDF Author: Iwao Tanaka
Publisher:
ISBN:
Category :
Languages : en
Pages : 330

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Essays on the Local Labor Market Effects of Globalization

Essays on the Local Labor Market Effects of Globalization PDF Author: Oscar Alejandro Mendez Medina
Publisher:
ISBN: 9781339065502
Category :
Languages : en
Pages :

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This dissertation consists of a series of papers studying the effect that globalization in its multiple forms has had on Mexican local labor markets. In Chapter 1, 'Trade Shocks and Mexican Local Labor Markets in the Great Recession', I study the role that international trade played in the transmission of the U.S. credit crisis to Mexican local labor markets. The economic opening process that Mexico started by opening up to international trade in the mid-1980s when it became a member of the GATT, and then reinforced in 1994 when NAFTA was enacted, has created a strong link between the business cycles of Mexico and the United States (Robertson, 2000). This trade-driven phenomenon has had significant consequences for Mexico's economic geography (Hanson, 1996). In particular, easier access to the U.S. market increased the level of dependence on exports to the U.S. for some Mexican municipalities. This increase in dependence was not homogenous throughout the country, mostly due to differences by municipality in transportation costs and industry specialization. This heterogeneity, plus the evolution of U.S. trade during the Great Recession (2007-2009), which involved a $40 billion drop in U.S. imports from Mexico, allows me to identify the role that these trade linkages played in the transmission of the crisis to Mexican local labor markets. I show that differences in manufacturing industry structure caused by Mexico's opening process have made a subset of Mexican municipalities especially vulnerable to economic events in the U.S. I find that Mexican regions that exported relatively more to the U.S. experienced large and significant differential effects when compared to municipalities more focused on the domestic market. Mexican regions with significant ties to the U.S. market experienced, during the crisis, a significantly larger decrease in employment and wages, and greater within local labor market adjustments than their less open counterparts, mainly characterized by large drops in manufacturing employment and significant increases in employment in the service and agricultural industries. Pursuing the same line of research, the second chapter of my dissertation explores 'The Effect of Chinese Import Competition on Mexican Local Labor Markets'. Recent estimates of the effect of globalization on labor markets have found that trade is having an increasingly larger impact on wage inequality. Particularly relevant is the "China Syndrome" study by Autor, Dorn, and Hanson (2013a), which presents evidence on the disruptive effects that import competition can have on a developed economy by estimating the impact that Chinese import competition had on U.S. local labor markets. One would expect to find that Chinese exports also had a large and significant effect on developing economies, particularly on those specialized in the production of labor-intensive goods. My paper contributes to the study of this relationship by analyzing the Mexican case. Following the methodology introduced in Autor et al. (2013a), I exploit variation across Mexican regions in import exposure stemming from initial differences in industry specialization in order to estimate the effect Chinese competition had on local Mexican labor markets. Also, by taking advantage of the Mexican exports' high dependence on the U.S. market, I estimate the effect that China-caused trade diversion had on Mexican labor markets. I find that the increase in competition decreased the employment share in manufacturing for the average Mexican local labor market. This effect was found to be larger for regions with high exposure to Chinese competition in the U.S. market, showing that there was a significant, negative indirect effect from China's trade growth. Workers' mobility also increased due to this negative shock. I name the third chapter 'Mexican Migrants' Response to a Trade Shock'. This study exploits the variation created by Chinese import competition across Mexican states and combines it with variation across U.S. states in their likelihood of receiving Mexican migrants in order to yield a causal estimate of the variation in the Mexican share of the labor force across U.S. states. The purpose of this study is both to determine whether international migration can be affected by external trade shocks, a topic very scantily studied in the economic literature of both trade and migration, and to open the doors to a study of migration effects on the receiving economy by using a plausibly exogenous shock to migration, as is the increase in import competition by China. I find that the increase in Mexican imports from China had a significant effect on Mexican workers' mobility towards the U.S. labor markets.

Essays In International Trade and Labor Markets

Essays In International Trade and Labor Markets PDF Author: Rodrigo Rodrigues Adão
Publisher:
ISBN:
Category :
Languages : en
Pages : 213

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This thesis develops empirical methodologies to investigate the effect of globalization on welfare and inequality both between- and within-countries. The first essay proposes a Roy-like model where workers are heterogeneous ill terms of their comparative and absolute advantage. We show that the schedules of comparative and absolute advantage (i) determine changes in the average and the variance of the log-wage distribution, and (ii) are nonparamnetrically identified from the cross-regional variation in the sectoral responses of employment and wages to observable sector-level demand shifters. Applying these results, we find that the rise in world commodity prices accounts for 5-10% of the fall in Brazilian wage inequality between 1991 and 2010. The second essay develops a methodology to construct nonparametric counterfactual predictions, free of functional-form restrictions on preferences and technology, in neoclassical models of international trade. First, we establish the equivalence between such models and reduced exchange models in which countries directly exchange factor services. This equivalence implies that, for an arbitrary change in trade costs, counterfactual changes in factor prices, and welfare only depend on the shape of a reduced factor demand system. Second, we provide sufficient conditions for the nionparainetric identification of this system. Together, these results offer a strict generalization of the parametric approach used in so-called gravity models. Finally, we use China's recent integration into the world economy to illustrate tile feasibility of our approach. The third essay investigates the connection between the recent rise in services trade and changes in labor market outcomes in different countries. We develop a theoretical framework where trade in services arises from the spatial unbundling of workers' task output. Transmission costs endogenously determine the magnitude of between-sector task trade both within a country ("outsourcing") and between countries ("offshoring"). We show that, while differentials in sectoral task prices decrease in response to outsourcing, they increase in response to offshoring. The heterogeneity in the composition of workers' task endowments controls responses in between- and within-sector wage inequality across countries.

Essays on International Trade and Labor Market Outcomes

Essays on International Trade and Labor Market Outcomes PDF Author: Tommaso Tempesti
Publisher:
ISBN:
Category : Electronic dissertations
Languages : en
Pages : 113

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Five essays on globalization and labor markets

Five essays on globalization and labor markets PDF Author: Frode Meland
Publisher:
ISBN: 9788292406083
Category :
Languages : en
Pages : 130

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Essays on Globalization and Labor Markets

Essays on Globalization and Labor Markets PDF Author: Mina Taniguchi
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Globalization, Technological Change, and Labor Markets

Globalization, Technological Change, and Labor Markets PDF Author: Stanley W. Black
Publisher: Springer Science & Business Media
ISBN: 1461549655
Category : Business & Economics
Languages : en
Pages : 336

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Globalization, Technological Change and Labor Markets is an edited collection of papers drawn from the conference held at the American Institute for Contemporary German Studies in June 1997. This conference brought German and American perspectives to bear on the complex issues of global competition, technological change, and labor markets in the welfare state. The contributions are organized into five sections dealing with various aspects of the problem: (1) Macroeconomic Perspectives; (2) Microeconomic Aspects; (3) the German Model of Labor Relations; (4) the Social Market Economy; and (5) Trade Policy and Environmental and Labor Standards. This edited collection seeks to explore many of the key issues surrounding the debate over the impact of globalization and technological change on labor markets in Europe and the United States. `This volume provides path-breaking insights as to why globalization has wreaked havoc on the welfare states that had once propelled Western Europe and North America to an unprecedented standard of living throughout the post-war period. The high level of scholarship contained in the individual chapters forms a compelling argument that will convince even the most resistant skeptics that the days of the classic welfare state are numbered. More importantly, this book is filled with concrete suggestions based on careful economic analysis as to how technological change and globalization can be harnessed in conjunction with a new role of the state to provide a high standard of living.' David B. Audretsch, Ameritech Chair of Economic Development, Indiana University

Essays on Labor Market Changes and Individual Outcomes in Developing Countries

Essays on Labor Market Changes and Individual Outcomes in Developing Countries PDF Author: Rashesh Shrestha
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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This dissertation is comprised of three self-contained empirical chapters, each exploring how individuals in developing countries navigate their labor markets. In my first chapter, I study the impact of a migration boom on investment in education by Nepalese youths. I find that opportunities to migrate have had a negative impact on attainment of education, which calls attention of policy-makers to design programs that incentive schooling. In the second chapter, I study the value of political connections to labor market outcomes. I find evidence of additional human capital investment and improved labor market outcomes due to political connections. In the third chapter, I compare the earnings growth of individuals in Indonesia who remained in formal employment (salaried workers employed in firms with five or more workers) and those who switched into non-formal jobs. The research indicates that slow job creation had a significant impact on the welfare displaced workers. Each of these chapters deals with an aspect of the labor market that is common across many developing countries. Changing economic incentives, political contexts, and globalization all contribute to individual decisions and outcomes that have consequences for welfare in poor countries. By better understanding the relationship between the characteristics of the labor markets and individual decisions and outcomes, we can hope to develop policies that maximize the ability of developing countries' labor markets to facilitate the process of economic development.

Four Essays on the Impact of Institutions, Technological Change, and Globalization on Labor Market Outcomes

Four Essays on the Impact of Institutions, Technological Change, and Globalization on Labor Market Outcomes PDF Author: Dario Cords
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Essays on Wage Formation and Globalization

Essays on Wage Formation and Globalization PDF Author: Andreas Hauptmann
Publisher: wbv Media GmbH & Company KG
ISBN: 3763941002
Category : Social Science
Languages : en
Pages : 154

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Warum zahlen manche Firmen nach Tarif, statt die Löhne individuell auszuhandeln? Zahlen Exportfirmen höhere Löhne als Firmen, die nicht exportieren und inwieweit wird dies von institutionellen Rahmenbedingungen bestimmt? Welche Zusammenhänge bestehen zwischen den Lohnstückkosten und der Exportstärke von Unternehmen? Mit diesen und weiteren Fragen befasst sich Andreas Hauptmann im vorliegenden Band. In mehreren Kapiteln legt der Autor dar, dass zwischen Löhnen, Globalisierung und institutionellen Kontextfaktoren vielfältige Wechselwirkungen bestehen.