Globalization, the jobs ladder and economic mobility
(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:
https://lup.lub.lu.se/record/3d822f59-2759-42d7-bbd0-aa985d6992ec
- author
- Davidson, Carl ; Heyman, Fredrik LU ; Matusz, Steven ; Sjöholm, Fredrik LU and Zhu, Susan LU
- organization
- publishing date
- 2020-08
- 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}}, }