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.

Show object

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 352

Classification and Topics

• Classification: Wirtschaft
• Subject: International trade ; organization of production ; technology choice ; division of labor

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Burda, Michael ; Dluhosch, Barbara
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2000

Further information

• Handle: http://hdl.handle.net/10419/75499