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NBER Working Papers and Publications
|February 2004||The Role of Globalization in the Within-Industry Shift Away from Unskilled Workers in France|
in Challenges to Globalization: Analyzing the Economics, Robert E. Baldwin and L. Alan Winters, editors
|May 2003||The Role of Globalization in the Within-Industry Shift Away from Unskilled Workers in France|
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 specializati...
Published: Baldwin, Robert E. and L. Alan Winters (eds.) Challenges to globalization: Analyzing the economics NBER Economic Research Conference Report series. Chicago and London: University of Chicago Press, 2004.