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Globalization, the jobs ladder and economic mobility

Davidson, Carl ; Heyman, Fredrik LU ; Matusz, Steven ; Sjöholm, Fredrik LU and Zhu, Susan LU (2020) In European Economic Review 127.
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.

Please use this url to cite or link to this publication:
author
; ; ; and
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Export, Globalization, Inequality, Job ladders, Wages
in
European Economic Review
volume
127
article number
103444
publisher
Elsevier
external identifiers
  • scopus:85085196050
ISSN
1873-572X
DOI
10.1016/j.euroecorev.2020.103444
language
English
LU publication?
yes
id
3d822f59-2759-42d7-bbd0-aa985d6992ec
date added to LUP
2020-04-06 11:33:00
date last changed
2022-04-18 21:45:43
@article{3d822f59-2759-42d7-bbd0-aa985d6992ec,
  abstract     = {{<p>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.</p>}},
  author       = {{Davidson, Carl and Heyman, Fredrik and Matusz, Steven and Sjöholm, Fredrik and Zhu, Susan}},
  issn         = {{1873-572X}},
  keywords     = {{Export; Globalization; Inequality; Job ladders; Wages}},
  language     = {{eng}},
  publisher    = {{Elsevier}},
  series       = {{European Economic Review}},
  title        = {{Globalization, the jobs ladder and economic mobility}},
  url          = {{http://dx.doi.org/10.1016/j.euroecorev.2020.103444}},
  doi          = {{10.1016/j.euroecorev.2020.103444}},
  volume       = {{127}},
  year         = {{2020}},
}