Final answer:
The effect of globalization on the U.S. labor market is wage stagnation.
Step-by-step explanation:
When examining trends in the globalization of human capital, researchers such as Forrester Research have predicted that the effect on the U.S. labor market would be wage stagnation. This means that the wages of workers in the U.S. would not increase significantly due to globalization.
This prediction is based on the idea that globalization increases the supply of highly skilled workers from around the world, which can potentially drive down wages for those workers in the U.S. labor market. This is because the increased supply of highly skilled workers leads to more competition for jobs, resulting in employers being able to offer lower wages.
For example, if there are more highly skilled workers available in the market, employers can choose from a larger pool of candidates and may be able to hire workers at lower wages. This can lead to wage stagnation for highly skilled workers in the U.S. labor market.