Title: Four Ways Globalization Affects American Workers | WorkingNation
Headings: Four Ways Globalization Affects American Workers
Four Ways Globalization Affects American Workers
Fewer Manufacturing Jobs
Lower Wages for Unskilled Workers…
…But Relatively Higher Wages for Skilled Workers
Cultural Savvy as a Job Requirement
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Content: Lower Wages for Unskilled Workers…
When jobs move overseas, there tends to be less demand for American workers who might have once filled those jobs. Usually, when jobs move overseas, it’s because workers in other countries are willing to do those jobs for lower pay. And the jobs that are easiest to outsource are those that don’t require much education or training to perform. The Economic Policy Institute estimates that in 2011, rising trade with less-developed countries reduced wages by 5.5 percent, or $1,800, for full-time workers without a four-year college degree. The EPI researchers noted that when workers are laid-off from jobs that have been outsourced, they often accept lower wages to find work in jobs that are impossible to outsource—landscaping or waiting tables, for example. …But Relatively Higher Wages for Skilled Workers
Here’s the thing that’s tricky to understand: Trade isn’t bad for all workers. In fact, trade tends to increase an economy’s total income. But those gains don’t affect all people equally. As low-skill workers watch their job options dwindle and wages decline, demand for skilled workers actually increases.