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Globalization and Uncertainty: Earnings Volatility in Sweden, 1985–2003
Author(s) -
HÄLLSTEN MARTIN,
KORPI TOMAS,
TÅHLIN MICHAEL
Publication year - 2010
Publication title -
industrial relations: a journal of economy and society
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.61
H-Index - 57
eISSN - 1468-232X
pISSN - 0019-8676
DOI - 10.1111/j.1468-232x.2009.00594.x
Subject(s) - volatility (finance) , earnings , globalization , economics , international economics , financial economics , market economy , finance
Earnings volatility has been linked to economic integration only through contradictory conjectures. We assess globalization’s role by examining volatility trends in manufacturing, private services, and public services. If trade increases uncertainty, volatility trends should differ markedly across industries since manufacturing, in contrast to especially public services, is exposed to international competition. We analyze earnings trajectories in Sweden 1985–2003, a country and period evincing accelerating trade, finding no indications of greater volatility increases in manufacturing.