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Globalization and social exclusion

Funded under: FP6-SOCIETY


The principal objective of this project is to determine the role played by international trade in influencing the employment and relative wages of unskilled workers in Europe. This task will be undertaken using a combination of data analysis, econometrics, case studies and simulation modelling and will take account of differences in industrial structures, social policies and technological change and labour markets and labour market policies in individual EU member states. The project will investigate how firms and industries in Europe have responded and adjusted to increased international competition from low wage economies. The implications of this analysis for the design of appropriate strategies for responding to future supply surges of low-skill products onto European markets from low-wage economies will be fully explored. A central hypothesis to be tested in this research is whether adjustments within broad industrial sectors in response to increased trade are more important than the inter-sectoral adjustments that have been the focus of previous research on the labour market impact of trade. In short, a central research issue is whether international specialisation driven by more trade in low wage goods is increasingly becoming defined by specialization within, rather than across, industrial categories. A key element of the project will be the collection of the most suitable data on trade, industrial characteristics (output, prices, investment, employment, wages), technology, labour market structures and national tax and social policies. These data will be collected together and made available as a single database. The results of the project will be widely disseminated, in the first instance via the discussion paper series of the participating institutions, and later through conferences for both the academic and the policy-making and business communities. Brief description of the research project.

Additional information

Authors: WHALLEY J (Editor), University of Warwick, West Midlands (GB)
Bibliographic Reference: EUR 21046 EN (2004), 93pp. Free of charge
Availability: (Catalogue Number: KI-NA-21-046-EN-S)
ISBN: ISBN: 92-894-7582-X
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