Globalization of Labor Market - Research Paper Example

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Globalization of Labor Market

It is not a new phenomenon as trade between countries has been in existence since the world war but modern globalization has been intensified by the use of new technology and conversion of governments into free market economies. It has led to a lot of positive as well as negative impacts on the economy. It leads to growth of the economy and creation of employment for a large population hence reducing poverty. Skill transfer between nations is also evident leading to labor productivity. However, it has been blamed for eliminating jobs and widening the pay gap between the skilled and un-skilled labor force. The growth of multinational companies has also led to a lot of changes in the labor market such as; low wages, segregation of women in service jobs and creation of sweatshops where women work under poor conditions. The paper will discuss the effects of globalization on the labor market. Effects of Globalization on the Labor Market Globalization has had a lot of positive and negative effects on the labor market. The IMF and OECD view globalization as contributing to positive change in the labor market. They argue that trade liberalization; improved technology, and foreign investments which characterize globalization are key drivers of the economy leading to creation of employment. ...Show more

Summary

Name of student: Topic: Lecturer: Date of Presentation: Introduction Boudreaux (8) defines globalization as “the process of interaction and integration among people, companies, governments of different nations driven by international trade and investment aided by information technology”…
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