The twin effects of globalization. Evidence from a sample of Indian manufacturing firms

Employees of globalized firms face a more uncertain stream of earnings and riskier employment prospects. However, they also have stronger incentives to train and upgrade their skills and benefit from more rapid careers. Hence, the costs of uncertainty and the benefits of skill upgrading associated with globalization are twin to each other. We provide empirical evidence of this so neglected trade-off for a sample of Indian manufacturing firms.