GLOBALIZATION AND WORK 4
increased income inequality in various ways. For example, the neoliberal reform of welfare and
tax systems has contributed to less social security and less progressive of tax regimes, thus
escalating the inequality in the distribution of the post-tax income among different income levels.
Besides, the neoliberal reforms have led to labor market inequality in some ways. For instance,
the highly-skilled workers and managers have been favored by the neoliberal reforms. Also, the
reforms have increased the wages for the highly-skilled employees, on the other hand, reducing
the salaries of the less-skilled people, thus leading to the inequality in different experience levels.
Over the years, there has been a diminution in trade barriers such as quotas and tariffs.
This decrease has resulted in increased world trade with relation to GDP and output. The World
Trade Organization's (WTO's) policies on lowering trade barriers are as a result of neoliberal
institutionalism theory as they emphasize economic efficiency and business gains due to
comparative advantage. Globalization has led to large-scale technological advancements which
have contributed to reduced demand for unskilled labor. Also, foreign direct investors go for
highly skilled workers; hence there is the increase in unemployment. For most developing
nations rise in unemployment, lack of job opportunities and deterioration of wages are among the
adverse effects of globalization.
Globalization has another dimension, that is, globalization as a practice. Practice refers to
the application or use of an idea, belief or methods. Development of an international regulation
for minimum labor standards is a practical approach resulting from globalization. International
labor standards are practices that are stipulated by international actors, as a result of value acuity
aimed at protecting fundamental worker rights, improve employment terms, and enhance job
security for workers globally. The purpose of labor standardization is to initiate a worldwide
minimum extent of employee immunity from inhumane labor practices through global