Globalization, the Jobs Ladder and Economic Mobility

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2018:31

Classification and Topics

• Classification: Wirtschaft ; Trade: General ; International Factor Movements and International Business: General ; Wages, Compensation, and Labor Costs: General
• Subject: Job Ladders ; Globalization ; Wages ; Inequality ; Export

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Davidson, Carl ; Heyman, Fredrik ; Matusz, Steven ; Sjöholm, Fredrik ; Zhu, Susan Chun
• Event: Veröffentlichung
• (who): Lund University, School of Economics and Management, Department of Economics
• (where): Lund
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/260260
• Last update: 10.03.2025, 11:43 AM CET