Date of Award
Bachelor of Arts
The United States labor market is undergoing seismic changes as it becomes more intertwined with the global economy. But this reality is not unique to the United States; technological innovation and the globalization phenomenon are shaping a world that is more socially, politically, and economically integrated than ever before. The Merriam Webster dictionary defines globalization as “the development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets.” The definition alone indicates that globalization capitalizes on international labor market inequities. The question immediately arises; is this a good thing or a bad thing for the average worker in the United States? What about other countries? Or maybe a better question would be even more general; who benefits from globalization and why? Answering these questions is crucial to understanding transformations within the labor market. This paper is an investigation of how free trade and free flow of capital influences US wages. Ultimately, its aim is to inform policy to anticipate shifts in demand for skilled and unskilled workers alike. This research contributes to the large body of literature focused on ensuring that the United States’ labor market is as robust, efficient, and just as possible.
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Vahle, Peter, "Economic Globalization: A Study of Foreign Direct Investment’s Impact on U.S. Wages" (2016). Economics Student Theses and Capstone Projects. 19.