Globalization and Economic Welfare under the Irregular Employment of Domestic Workers

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By focusing on the unfair disparity between skilled workers of uniform quality, where unionized older workers are employed permanently with higher wages, but younger workers fail to occupy per-manent positions and are employed as uncertain temporary irregular staff on lower wages, we inves-tigate the effects of the two types of globalization caused by the increasing immigration of foreign unskilled workers and trade liberalization. Under certain conditions, the immigration of unskilled workers might expand the income gap between the two types of skilled workers, but it would have a positive effect on national welfare. Thus, with adequate income re-distribution policies by the gov-ernment, immigration could be a welfare-improving policy. In contrast, although trade liberalization may reduce the wage gap between the two types of skilled workers, every worker may lose out, and the welfare-improving possibility of trade liberalization is limited.

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  • 経済科学

    経済科学 60 (4), 119-128, 2013-03-25

    名古屋大学大学院経済学研究科

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