Globalization and Workers in Developing Countries
Stories on the positive and negative effects of globalization on workers in developing countries abound. But a comprehensive picture is missing and many of the stories are ideologically charged. This paper reviews the academic literature on the sub...
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| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2003/01/2125232/globalization-workers-developing-countries http://hdl.handle.net/10986/19177 |
| Summary: | Stories on the positive and negative
effects of globalization on workers in developing countries
abound. But a comprehensive picture is missing and many of
the stories are ideologically charged. This paper reviews
the academic literature on the subject, including several
studies currently under way, and derives the implications
for public policy. First, it deals with the effects of
openness to trade, foreign direct investment, and financial
crises on average wages. Second, it discusses the impact of
exposure to world markets on the dispersion of wages by
occupation, skill, and gender. Third, it describes the
pattern of job destruction and job creation associated with
globalization. Because these two processes are not
synchronized, the fourth issue addressed is the impact on
unemployment rates. Fifth, the paper reviews the labor
market policies that can be used to offset the adverse
effects of globalization on employment and labor earnings.
Finally, it discusses how the international community could
encourage developing countries to adopt sound labor market
policies in the context of globalization. |
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