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Globalization and workers in developing countries

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Author Info
Rama, Martin
Abstract

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 contextof globalization.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2958.

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Date of creation: 31 Jan 2003
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Handle: RePEc:wbk:wbrwps:2958

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Keywords: Labor Policies; Public Health Promotion; Banks&Banking Reform; Environmental Economics&Policies; Economic Theory&Research; Environmental Economics&Policies; Economic Theory&Research; TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; Banks&Banking Reform; Health Monitoring&Evaluation;

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Beyer, Harald & Rojas, Patricio & Vergara, Rodrigo, 1999. "Trade liberalization and wage inequality," Journal of Development Economics, Elsevier, vol. 59(1), pages 103-123, June. [Downloadable!] (restricted)
  2. Datt, Gaurav & Ravallion, Martin, 1994. "Transfer Benefits from Public-Works Employment: Evidence for Rural India," Economic Journal, Royal Economic Society, vol. 104(427), pages 1346-69, November. [Downloadable!] (restricted)
  3. Anderson, Kym, 1996. "Social Policy Dimensions of Economic Integration: Environmental and Labour Standards," CEPR Discussion Papers 1440, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  4. Assaad, Ragui, 1999. "Matching Severance Payments with Worker Losses in the Egyptian Public Sector," World Bank Economic Review, Oxford University Press, vol. 13(1), pages 117-53, January.
  5. Malathy Duraisamy, 2000. "Child Schooling and Child Work in India," Econometric Society World Congress 2000 Contributed Papers 0837, Econometric Society. [Downloadable!]
  6. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
  7. Aitken, Brian & Harrison, Ann & Lipsey, Robert E., 1996. "Wages and foreign ownership A comparative study of Mexico, Venezuela, and the United States," Journal of International Economics, Elsevier, vol. 40(3-4), pages 345-371, May. [Downloadable!] (restricted)
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  8. Kaushik Basu, 1999. "Child Labor: Cause, Consequence, and Cure, with Remarks on International Labor Standards," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1083-1119, September. [Downloadable!] (restricted)
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  9. Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 1999. "U.S. Trade and Other Policy Options and Programs to Deter Foreign Exploitation of Child Labor," Discussion Papers Series, Department of Economics, Tufts University 9904, Department of Economics, Tufts University. [Downloadable!]
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  10. Butcher, Kristin F. & Rouse, Cecilia Elena, 2001. "Wage effects of unions and industrial councils in South Africa," Policy Research Working Paper Series 2520, The World Bank. [Downloadable!]
  11. Forteza, Alvaro & Rama, Martin, 2001. "Labor market"rigidity"and the success of economic reforms across more than one hundred countries," Policy Research Working Paper Series 2521, The World Bank. [Downloadable!]
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  12. Kyle Bagwell & Richard W. Staiger, 1998. "The Simple Economics of Labor Standards and the GATT," NBER Working Papers 6604, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  13. Dollar, David & Kraay, Aart, 2001. "Trade, growth, and poverty," Policy Research Working Paper Series 2615, The World Bank. [Downloadable!]
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  14. Cameron, L. & Worswick, C., 1998. "Education Expenditure Responses to Crop Loss in Indonesia: A Gender Bias," Department of Economics - Working Papers Series 636, The University of Melbourne.
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  15. Fallon, Peter R & Lucas, Robert E B, 1991. "The Impact of Changes in Job Security Regulations in India and Zimbabwe," World Bank Economic Review, Oxford University Press, vol. 5(3), pages 395-413, September.
  16. Jean-Marie Baland & James A. Robinson, 2000. "Is Child Labor Inefficient?," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 663-679, August. [Downloadable!] (restricted)
  17. Bell, Linda A, 1997. "The Impact of Minimum Wages in Mexico and Colombia," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages S102-35, July. [Downloadable!] (restricted)
  18. Kristin F. Butcher & Cecilia Elena Rouse, 2001. "Wage effects of unions and industrial councils in South Africa," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 54(2), pages 349-374, January.
  19. Krishna, Pravin & Mitra, Devashish & Chinoy, Sajjid, 2001. "Trade liberalization and labor demand elasticities: evidence from Turkey," Journal of International Economics, Elsevier, vol. 55(2), pages 391-409, December. [Downloadable!] (restricted)
  20. Assaad, Ragui, 1997. "The Effects of Public Sector Hiring and Compensation Policies on the Egyptian Labor Market," World Bank Economic Review, Oxford University Press, vol. 11(1), pages 85-118, January.
  21. repec:att:wimass:1919989 is not listed on IDEAS
  22. William T. Dickens & Kevin Lang, 1991. "An Analysis of the Nature of Unemployment in Sri Lanka," NBER Working Papers 3777, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  23. Feenstra, Robert C. & Hanson, Gordon H., 1997. "Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras," Journal of International Economics, Elsevier, vol. 42(3-4), pages 371-393, May. [Downloadable!] (restricted)
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  24. Brown, D.K. & Dearorff, A.V. & Stern, R.M., 1993. "International Labor Standards and Trade: A Theoretical Analysis," Working Papers 333, Research Seminar in International Economics, University of Michigan.
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. César Calderón & Alberto Chong, 2009. "Labor market institutions and income inequality: an empirical exploration," Public Choice, Springer, vol. 138(1), pages 65-81, January. [Downloadable!] (restricted)
  2. Irfan ul Haque, 2004. "Globalization, Neoloberalism And Labour," UNCTAD Discussion Papers 173, United Nations Conference on Trade and Development. [Downloadable!]
  3. Peter Nunnenkamp & Rainer Schweickert & Manfred Wiebelt, 2006. "Distributional Effects of FDI: How the Interaction of FDI and Economic Policy Affects Poor Households in Bolivia," Kiel Working Papers 1281, Kiel Institute for the World Economy. [Downloadable!]
    Other versions:
  4. T. H. Gindling & Katherine Terrell, 2007. "Minimum Wages and the Welfare of Workers in Honduras," IZA Discussion Papers 2892, Institute for the Study of Labor (IZA). [Downloadable!]
  5. van der Berg, Servaas & Burger, Ronelle & Louw, Megan, 2007. "Post-Apartheid South Africa: Poverty and Distribution Trends in an Era of Globalization," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
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  6. Thierry Verdier, 2005. "Intégration commerciale « socialement responsable » : une approche en termes d'économie politique," Revue d’économie du développement, De Boeck Université, vol. 19(4), pages 55-121. [Downloadable!]
  7. Rémi Bazillier & Nicolas Sirven, 2006. "Les normes fondamentales du travail contribuent-elles à réduire les inégalités ?," Documents de travail 123, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV. [Downloadable!]
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  8. Bhanumurthy, N.R. & Mitra, Arup, 2006. "Globalization, Growth and Poverty in India," Working Papers RP2006/41, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
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