Downward pressure on wages: Globalization is rarely the primary factor that fosters wage moderation in low-skilled work conducted in developed countries.
Downward pressure on wages: Globalization is rarely the primary factor that fosters wage moderation in low-skilled work conducted in developed countries. As discussed in a recent issue of the World Economic Outlook, a more significant factor is technology. As more work can be mechanized, and as fewer people are needed to do a given job than in the past, the demand for that labor will fall, and as a result the prevailing wages for that labor will be affected as well.