The impact of globalization on labour market specially focusing on wage inequality and job displacement. A theoretical analysis

Abstract

The paper analyses the impact of globalization on the labour market, with a specific focus on wage inequality and job displacement. Globalization increases competitiveness, which breeds income inequality and job relocation. Technological change has resulted in a widespread shift in labour demand, favouring skilled workers at the expense of less skilled ones. Around the world, significant numbers of jobs have been eliminated due to cyclical downturns as well as structural changes brought on by changes in consumer demand, trade patterns, technology change, etc. Loss of employment has a detrimental effect on morality, consumption and health. Understanding the advantages and downsides of prospective public policy responses in the context of these consequences is essential. The paper also addresses potential strategies to deal with the challenges it brings. By throwing light on these concerns, the study aims to enhance a better understanding of the effects of globalization on the labour market and provide information for policy discussions aimed at creating a more equitable and sustainable future for workers.

Keywords

• globalization
• wage inequality
• job displacement
• labour market