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Global inequality, rising powers and labour standards

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  • Dev Nathan
  • Sandip Sarkar
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    Abstract

    Abstract The paper analyses growing inequality in the rising powers, concentrating on the situation in China and India. It describes the various processes that are currently underway to reduce inequality in these economies. These processes include a combination of tightening the labour market, as best seen in China, increasing rural productivity and government measures to boost basic rural incomes in all such countries. Reductions in inequality in the emerging economies have a global macroeconomic effect of increasing consumption and investment, counteracting the current global slowdown. They also have the benefit of creating more space at the bottom for poorer economies to take up more of the world’s low-skill production, as the emerging economies themselves move up to higher-skill production and exporting. This sequential upgrading is being driven by the growth of emerging economy markets and by wage increases in the emerging economies.

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    File URL: http://www.capturingthegains.org/pdf/ctg-wp-2012-09.pdf
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    Bibliographic Info

    Paper provided by BWPI, The University of Manchester in its series Brooks World Poverty Institute Working Paper Series with number ctg-2012-09.

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    Date of creation: 2012
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    Handle: RePEc:bwp:bwppap:ctg-2012-09

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    1. Deininger, Klaus & Squire, Lyn, 1998. "New ways of looking at old issues: inequality and growth," Journal of Development Economics, Elsevier, vol. 57(2), pages 259-287.
    2. William Milberg & Deborah Winkler, 2010. "Financialisation and the dynamics of offshoring in the USA," Cambridge Journal of Economics, Oxford University Press, vol. 34(2), pages 275-293, March.
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