Karabay, Bilgehan; McLaren, John - National Bureau of Economic Research (NBER) - 2009
We study the effect of globalization on the volatility of wages and worker welfare in a model in which risk is … trade hurts rich-country workers, while reducing the volatility of their wages; by contrast, offshoring benefits them, while … raising the volatility of their wages. We thus formalize, but also sharply circumscribe, a common critique of globalization. …