Globalization, Technological Change, and Labor Markets

Globalization, Technological Change and Labor Markets is an edited collection of papers drawn from the conference held at the American Institute for Contemporary German Studies in June 1997. This conference brought German and American perspectives to bear on the complex issues of global competition, technological change, and labor markets in the welfare state. The contributions are organized into five sections dealing with various aspects of the problem: (1) Macroeconomic Perspectives; (2) Microeconomic Aspects; (3) the German Model of Labor Relations; (4) the Social Market Economy; and (5) Trade Policy and Environmental and Labor Standards. This edited collection seeks to explore many of the key issues surrounding the debate over the impact of globalization and technological change on labor markets in Europe and the United States. `This volume provides path-breaking insights as to why globalization has wreaked havoc on the welfare states that had once propelled Western Europe and North America to an unprecedented standard of living throughout the post-war period. The high level of scholarship contained in the individual chapters forms a compelling argument that will convince even the most resistant skeptics that the days of the classic welfare state are numbered. More importantly, this book is filled with concrete suggestions based on careful economic analysis as to how technological change and globalization can be harnessed in conjunction with a new role of the state to provide a high standard of living.' David B. Audretsch, Ameritech Chair of Economic Development, Indiana University

Table of Contents:
1 Introduction.- 1.1 Overview.- 1.2 Macroeconomic Perspectives on the Impact of Global Competition and Technological Change.- 1.3 Microeconomic Aspects of Global Competition and Technological Change.- 1.4 The German Model of Labor Relations Under Pressure.- 1.5 Costs of the Social Market Economy.- 1.6 Trade Policy and Environmental and Labor Standards.- 1.7 Conclusions.- 2 Globalization and Productivity in the United States and Germany.- 2.1 Introduction.- 2.2 Measures of Productivity Growth and the Role for Globalization.- 2.3 Data and Empirical Implementation.- 2.4 Results and Discussion.- 2.5 Final Remarks.- Comment George Johnson.- 3 European Labor Markets: Sectoral Versus Spatial Shocks.- 3.1 Introduction.- 3.2 A Conceptual Framework.- 3.3 Data.- 3.4 Results.- 3.5 Conclusion.- Comment Erica L. Groshen.- 4 The Changing Skill Structure of Employment in German Manufacturing: a Peek Inside the Industry Black Box.- 4.1 Introduction.- 4.2 The Big Picture.- 4.3 The Data.- 4.4 Creative Destruction?.- 4.5 Skills, Technology, and Labor Productivity.- 4.6 Skill Intensity and the International Activities of Firms.- 4.7 Skill Intensity and Employment Growth.- 4.8 Concluding Remarks.- Comment Gary Burtless.- 5 Relative Earnings and The Demand for Unskilled Labor in West German Manufacturing.- 5.1 Introduction.- 5.2 Theoretical and Institutional Background.- 5.3 Some Stylized Facts.- 5.4 Substitution Between Unskilled and Skilled Labor.- 5.5 Conclusions.- 6 Labor Mobility, Labor Standards, and Trade Policy: the Case of The German Entsendegesetz.- 6.1 Introduction.- 6.2 Labor Standards in the EU.- 6.3 The Emergence of the German “Law on the Posting of Labor”.- 6.4 Liberalizing Labor Migration Versus Liberalizing Trade: Adjustment Differences.- 6.5 Conclusion.- Comment MichaelJ. Koop.- 7 Globalization and The “German Model”: Can It Survive?.- 7.1 Introduction.- 7.2 Globalization: Fact or Fiction?.- 7.3 Corporatism in Germany: The Nature of Cooperative Labor Relations.- 7.4 From Corporatism to Conflict.- 7.5 Can Corporatism Survive?.- 7.6 Conclusion.- Comment Heinz-Josef Tüselmann.- 8 Financing Social Security in Germany: Proposals for Changing its Structure and Some Possible Effects.- 8.1 Introduction.- 8.2 Structure of Social Security in Germany and How it is Financed.- 8.3 Main Arguments in the German Debate for Changing the Structure of the Sources of Finance of Social Insurance.- 8.4 The Present Situation in Germany in Light of Arguments for Appropriate Financing of Social Security.- 8.5 Recent Research on Effects of Changing the Structure of Finance of Social Insurance in Germany.- 8.6 Some Concluding Remarks.- Comment Irwin L. Collier, Jr..- 9 Labor Demand, Unemployment, and The Cost of Social Insurance Schemes in Germany.- 9.1 Introduction.- 9.2 Labor Demand and Social Insurance Contributions in the Literature.- 9.3 Theoretical Model and Estimation Method.- 9.4 Estimation and Simulation Results.- 9.5 Conclusions.- Comment Marvin Kosters.- 10 Issues of Environmental and Labor Standards in The Global Trading System.- 10.1 Introduction.- 10.2 Definition and Scope of Environmental and Labor Standards.- 10.3 Rationales for Harmonization of Standards.- 10.4 Economic Effects of Environmental and Labor Standards: Theoretical Considerations.- 10.5 Economic Effects of Environmental and Labor Standards: Empirical Evidence.- 10.6 Monitoring and Enforcement of Environmental and Labor Standards.- 10.7 Conclusions and Implications for Policy.- Comment T. N. Srinivasan.- 11 The Political Economy of International Labor Standards.- 11.1Introduction.- 11.2 International Labor Standards: Competitiveness or Human Rights Issue?.- 11.3 Labor Costs and International Competitiveness.- 11.4 Human Rights and International Labor Standards.- 11.5 Policy Options.- 11.6 Conclusions.- Appendix 1.- Appendix 2.- Comment Siegfried Schultz.