Question

What role has economic integration and globalized production played in changing conditions in labor in the United States

Answer 1

Ans)

Globalisation refers to the integration of markets in the global economy, leading to the increased interconnectedness of national economies.

globalized production played in changing conditions in labor in the United States

Globalisation is one factor contributing to the decline in the labour income share and the rising returns for skilled workers.Globalization is clearly contributing to increased integration of labor markets and closing the wage gap between workers in advanced and developing economies, especially through the spread of technology. It also plays a part in increasing domestic income inequality.News from EPI Globalization has lowered wages for American workers, new EPI study finds. At the same time, globalization increases demand in the United States for professionals, skilled labor and capital, thereby increasing incomes for college-educated workers and widening the gap between the rich and poor.many cases, globalization has increased the choices of goods and services available to consumers while also lowering their average price. As a result, American consumers spend less on many goods than they did about a century ago. These changes have coincided with increasing long term worker productivity.Globalization is clearly contributing to increased integration of labor markets and closing the wage gap between workers in advanced and developing economies, especially through the spread of technology Policymakers must instead focus on what can be done to help workers adjust to a changing world.

impact of globalisation is occurring against a background of

widespread reforms to labour market institutions (see the

Restated OECD Jobs Strategy) –

for example:

1 Reductions in product market and labour market regulations

2 Activation of the unemployed

3 Increased responsiveness of wage setting to supply/demand

pressures

4 Reductions in tax wedges

Role of globalisation

A) Globalisation is associated with rising living standards

B) Globalisation is one factor generating structural change

C) The ongoing globalisation process is one factor helping to dampen wage inflation and reduce the labour income share.

D) The higher wage elasticity of labour demand raises potential gains in employment from labour-market reforms, but also raises the potential volatility of workers labour market outcomes.

E) Labour market developments are becoming more closely linked with those in other countries.