What would be the impact of globalisation on wages in advanced economies?
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The main impact of globalization on wages in advanced economies will be to create a greater amount of disparity in wages between those with higher and lower skill levels. Globalization will increase the gap between "haves" and "have-nots." We can already see this process at work in places like the US.
The have-nots will see their wages drop due to competition from abroad. They will have to accept lower wages to prevent their jobs from going overseas. People in highly skilled jobs, on the other hand, are likely to benefit. Their firms can, with globalization, make more money by doing the "brain work" for a much bigger market. This will make them more valuable and will drive their wages up.
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