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Dynamic Globalization and Its Potentially Alarming Prospects for Low-Wage Workers / Hans Fehr, Sabine Jokisch, Laurence J. Kotlikoff.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Fehr, Hans.
Contributor:
National Bureau of Economic Research.
Jokisch, Sabine.
Kotlikoff, Laurence J.
Series:
Working Paper Series (National Bureau of Economic Research) no. w14527.
NBER working paper series no. w14527
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2008.
Summary:
Will incomes of low and high skilled workers continue to diverge? Yes says our paper's dynamic, six-good, five-region -- U.S., Europe, N.E. Asia (Japan, Korea, Taiwan, Hong Kong), China, and India -- general equilibrium, life-cycle model.
The model predicts a near doubling of the ratio of high- to low-skilled wages over the century. Increasing wage inequality arises from a traditional source -- a rising worldwide relative supply of unskilled labor, reflecting Chinese and Indian productivity improvements. But China's and India's education policies matter. If successive Chinese and Indian cohorts become more skilled, major exacerbation of inequality will be precluded.
Notes:
Print version record
December 2008.

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