NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Role of Globalization in the Within-Industry Shift Away from Unskilled Workers in France

Vanessa Strauss-Kahn

NBER Working Paper No. 9716
Issued in May 2003
NBER Program(s):   ITI   LS

Growth in international trade and globalization has been correlated in nearly all countries with a worsening of the less skilled labor situation relative to the skilled. In this empirical paper, I show that an important component of recent globalization in France has been a huge growth in vertical specialization -- the completion of the different production stages of a good in different countries. By shifting relative labor demand across countries, globalization of this form could explain the poor relative showing of unskilled labor in industrial countries. Using input-output tables and labor data, I find that in France vertical specialization -- defined as the share of imported inputs in production -- rose from 9% in 1977 to 14% in 1993. Further estimations show that vertical specialization contributed from 11% to 15% of the decline in the share of unskilled workers in French manufacturing employment for the 1977-1985 period and for 25% of the decline in the 1985-1993 period.

download in pdf format
   (252 K)

email paper

This paper is available as PDF (252 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w9716

Published:

Users who downloaded this paper also downloaded these:
Strauss-Kahn The Role of Globalization in the Within-Industry Shift Away from Unskilled Workers in France
Campa and Goldberg w5919 The Evolving External Orientation of Manufacturing Industries: Evidence from Four Countries
Berman, Bound, and Griliches w4255 Changes in the Demand for Skilled Labor within U.S. Manufacturing Industries: Evidence from the Annual Survey of Manufacturing
Feenstra and Hanson w5121 Foreign Investment, Outsourcing and Relative Wages
Card, Kramarz, and Lemieux w5487 Changes in the Relative Structure of Wages and Employment: A Comparison of the United States, Canada, and France
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us