Responding to the Labour Market Challenges of Globalisation

Editor: Dennis Snower, Sebastian Braun, and Wolfgang Lechthaler, Kiel Institute for the World Economy


There is broad agreement both among economists and policy makers that the globalisation process will harm some groups in society while benefiting others. A particular source of anxiety is the deteriorated labour market performance of the losers of globalisation, be it in form of higher unemployment, lower wages or both. Consequently, globalisation creates major challenges to welfare states, with their objectives to provide social insurance, redistribution and lifecycle transfers. Surprisingly, however, there exists very little academic research about the optimal way to compensate those who lose from globalisation. This lack of research is all the more surprising, as the support for the globalisation process at large will dwindle, and an ensuing escalation of trade protectionism may even reverse the process, if the welfare state does not enable a majority of voters to reap the benefits of globalisation.

The aim of the special issue is to solicit and publish papers that identify the challenges of the globalisation process for the labour market and / or analyse how welfares states can respond to these challenges. We therefore encourage submissions on topics of relevance for this special issue from the areas of labour economics, international trade, and public economics.


  • October 04, 2012 |
  • Downloads: 6015 |
  • JEL: E24, F16, J6
  • | 5 citations (RePEc)
  • August 02, 2012 |
  • Downloads: 5948 |
  • JEL: F16, F42, H87, J38
  • June 06, 2012 |
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  • JEL: C21, F15, G34, J31
Benedikt Heid and Mario Larch
Migration, Trade and Unemployment
  • March 07, 2012 |
  • Downloads: 11725 |
  • JEL: C23, C26, F15, F16, F22
  • | 1 comment
  • | 1 citations (RePEc)

Discussion Papers

  • January 11, 2012 |
  • Downloads: 8882 |
  • JEL: F14, F16, J60
  • | discussible