Inequality and Schooling Responses to Globalization Forces: Lessons from History

In the first global century before 1914, trade and especially migration had profound effects onboth low-wage, labor abundant Europe and the high-wage, labor scarce New World. Those globalforces contributed to a reduction in unskilled labor scarcity in the New World and to a rise inunskilled labor scarcity in Europe. Thus, it contributed to rising inequality in overseas countries,like the United States, and falling inequality in most of Europe. Falling unskilled labor scarcityand rising skill scarcity contributed to the high school revolution in the US. Rising unskilledscarcity also contributed to the primary schooling and literacy revolution in Europe. Under whatconditions would we expect the same responses to globalization in today’s world? This paperargues that modern debates about inequality and schooling responses to globalization should paymore attention to history.