Labor Economics

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Chapter 11

Globalization, Employment, and Inequality

In this chapter we will:

  • Review facts about the rise in the volume of trade and its consequences
  • Analyze the effects of trade on wage inequality and unemployment
  • See how trade selects firms according to their productivity
  • Estimate the impact of trade on unemployment using the approach of Dutt, Devashish, and Priya (2009) (The related data for 90 countries over the 1985-2004 period, as well as programs, are available at
  • Identify the characteristics of exporting firms
  • Review facts about migratory flows
  • Learn what the economic consequences of immigration are
  • Estimate the impact of internal migration flows, based on the analysis of Boustan, Fishback, and Kantor (2010) for the United States during the Great Depression of the 1930s (Data and programs are available at
  • Observe how rapidly the labor market adjusts to international migration shocks

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Graphics of the chapter

Reproducing the figures and the main results

Chapter 11 figures


Dutt, P., Devashish, M., & Priya, R. (2009) "International trade and unemployment: Theory and cross-national evidence" Journal of International Economics


Boustan, L., Fishback, P., & Kantor, S. (2010) "The effect of internal migration on local labor markets: American cities during the great depression" Journal of Labor Economics


Teaching slides

  • Presentation Title
  • author
  • Creation date
    • Globalization, unemployment and inequality
    • Pierre Cahuc, Stéphane Carcillo, André Zylberberg
    • 12/08/2014