Impact of Globalization on Wage Gap

Globalization influences the wage gap by increasing competition among countries for jobs and investments. Businesses may move operations to countries with lower labor costs, often leading to wage stagnation or decline in higher-cost regions. While globalization can create jobs in developing countries, it can also widen the wage gap between skilled and unskilled workers. Those with specialized skills benefit more from global opportunities, while others may face job insecurity. In summary, globalization can both create economic growth and exacerbate income inequality, affecting wages differently across various regions and demographics.