Heterogeneous Impact of Company Consolidation and Technological Innovation on the Labor Market in the Era of Globalization : A Systematic Literature Review

Abstract

The goal of the current study was to identify the motifs found in the pertinent empirical literature. Following a thorough review of the literature, the current study found that globalization has affected the employment rate, exacerbated gender disparities, and altered trade and employment in the labor market. Additionally, the study found that FDI has several significant impacts on sectorial employment, employment productivity, employment in the private sector, and employment creation. The study also showed that the mixed impacts of remittances on labor and employment vary across economies. In a similar vein, it has been demonstrated that trade openness influences employment shifts. Furthermore, the analysis highlights that technological advancement, often accelerated by globalization, contributes to labor market polarization by increasing the demand for high-skilled workers while reducing opportunities for low-skilled labor. The study emphasizes that while globalization offers opportunities for economic growth, it also poses challenges in achieving inclusive and equitable employment. Therefore, effective policy measures are required to balance trade liberalization, foreign investment inflows, and domestic labor protection. These findings contribute to a deeper understanding of how globalization shapes employment dynamics and economic structures, offering insights for policymakers aiming to promote sustainable labor market development.