Does Globalization Lower Wages and Export Jobs?

Increased globalization - the international integration of markets forgoods, technology, labor, and capital - has coincided in the past 20years with a shift in demand from less-skilled workers to those with moreskills. Have imports from developing countries been responsible for thelowered wages of the unskilled, increased unemployment, and widenedincome inequality in the more advanced countries? This paper finds that amore important influence on labor markets during these years has been atechnology-driven shift in labor demand