Essay On Globalization And Wage Inequality

Feenstra, R. C., & Hanson, G. H.. (1996). Globalization, Outsourcing, and Wage Inequality. The American Economic Review, 86(2), 240–245. Retrieved from http://www.jstor.org/stable/2118130 In this article, Feenstra and Hansen reexamine their previously published work on the effects of globalization and outsourcing on the wages of less-skilled workers in the United States for the periods of 1972 to 1992. They point out that data shows the wages of less skilled workers has fallen dramatically since the 1970’s relative to those of more skilled workers and that outsourcing has increased demand for skilled labor in the U.S. They admit that technological innovation has impacted wage inequality, however, Feenstra and Hansen (1996) state, “…technology is surely an important contributing factor to rising wage
This article is very detailed and a prerequisite of advanced economic theory is suggested to grasp all the concepts and formulas.

Clott, Christopher B. (2004). Perspectives on Global Outsourcing and the Changing Nature of Work. Business & Society Review (00453609). Summer 2004, Vol. 109 Issue 2, p153-170. 18p. Retrieved from http://eds.a.ebscohost.com.proxy-library.ashford.edu. doi:10.1111/j.0045-3609.2004.00189.x.

In this article, Clott highlights the rapid growth of global outsourcing and the reasons behind it. Clott (2004) says one of the reasons for the growth is that, “…advances such as the Internet allowing near-instant communication, the ability of firms to procure and source products and services from anywhere in the world has increased dramatically” (p.2). He concludes that unless something dramatic happens, companies will continue the trend of outsourcing in order to stay competitive in the world