Fragmentation, globalization and labor markets

Arbeitspapier

Fragmentation of the value-added-chain is modeled as the reaction of monopolistically competitive firms to the removal of barriers to trade and factor mobility in an integrated trading environment. Since fragmentation requires high-skilled labor, this form of globalization can induce labor market effects similar to those caused by skill-biased technical change. In the short run, it is likely that fragmentation will be accompanied by an increase in high and low-skilled service employment as well as in the skilled wage premia, as observed in OECD countries. These implications can be reversed, however, as new firms enter the market.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: SFB 373 Discussion Paper ; No. 2001,41

Classification and Topics

• Classification: Wirtschaft ; Trade: General ; Organization of Production ; Technological Change: Choices and Consequences; Diffusion Processes
• Subject: International Trade ; Organization of Production ; Technology Choice ; Division of Labor

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Burda, Michael C. ; Dluhosch, Barbara
• Event: Veröffentlichung
• (who): Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes
• (where): Berlin
• (when): 2001

Further information

• Handle: http://hdl.handle.net/10419/62688
• URN: urn:nbn:de:kobv:11-10049845
• Last update: 10.03.2025, 11:44 AM CET