Karabay, Bilgehan; McLaren, John D. - 2009
"We study the effect of globalization on the volatility of wages and worker welfare in a model in which risk is … allocated through long-run employment relationships (the 'invisible handshake'). Globalization can take two forms: International … raising the volatility of their wages. We thus formalize, but also sharply circumscribe, a common critique of globalization …