IDEAS home Printed from
   My bibliography  Save this article

Globalization of labor markets and the growth prospects of nations


  • Basu, Kaushik


The many and varied crises in the world economy since 2007 seem to have different origins and diverse manifestations. This paper contends that there is however a structural shift beneath the global economy that is now reaching a critical mass, and that accounts for many of these crises, despite the diversity of manifestations. This shift is occasioned by two kinds of technological changes--the familiar labor-saving and what is here called"labor-linking."The paper argues that these changes (1) create a short-term window of opportunity for developing and emerging economies, but (2) in the long run constitute a major, multilateral policy challenge for all. To meet this challenge, we have to think outside the box and conceive of innovative policies. The paper briefly speculates on what those policies might be.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Basu, Kaushik, 2016. "Globalization of labor markets and the growth prospects of nations," Journal of Policy Modeling, Elsevier, vol. 38(4), pages 656-669.
  • Handle: RePEc:eee:jpolmo:v:38:y:2016:i:4:p:656-669
    DOI: 10.1016/j.jpolmod.2016.05.009

    Download full text from publisher

    File URL:
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    1. Per Krusell & Lee E. Ohanian & JosÈ-Victor RÌos-Rull & Giovanni L. Violante, 2000. "Capital-Skill Complementarity and Inequality: A Macroeconomic Analysis," Econometrica, Econometric Society, vol. 68(5), pages 1029-1054, September.
    2. Bentolila Samuel & Saint-Paul Gilles, 2003. "Explaining Movements in the Labor Share," The B.E. Journal of Macroeconomics, De Gruyter, vol. 3(1), pages 1-33, October.
    3. 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.
    4. François Bourguignon, 2015. "The Globalization of Inequality," Economics Books, Princeton University Press, edition 1, number 10433.
    5. Oecd, 2015. "What Lies Behind Gender Inequality in Education?," PISA in Focus 49, OECD Publishing.
    6. Olivier Blanchard & Francesco Giavazzi, 2003. "Macroeconomic Effects of Regulation and Deregulation in Goods and Labor Markets," The Quarterly Journal of Economics, Oxford University Press, vol. 118(3), pages 879-907.
    7. George A. Akerlof & Robert J. Shiller, 2015. "Phishing for Phools: The Economics of Manipulation and Deception," Economics Books, Princeton University Press, edition 1, number 10534.
    8. Salvatore Morelli & Anthony Atkinson, 2015. "Inequality and crises revisited," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 32(1), pages 31-51, April.
    9. Brent Neiman, 2014. "The Global Decline of the Labor Share," The Quarterly Journal of Economics, Oxford University Press, vol. 129(1), pages 61-103.
    10. Daron Acemoglu, 2003. "Labor- And Capital-Augmenting Technical Change," Journal of the European Economic Association, MIT Press, vol. 1(1), pages 1-37, March.
    11. Nanak Kakwani & Hyun H. Son, 2015. "Income inequality and social well-being," Working Papers 380, ECINEQ, Society for the Study of Economic Inequality.
    12. Torben M Andersen, 2015. "Human Capital, Inequality and Growth," European Economy - Discussion Papers 2015 - 007, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    13. E. Maskin, 2015. "Why Haven't Global Markets Reduced Inequality in Emerging Economies?," World Bank Economic Review, World Bank Group, vol. 29(suppl_1), pages 48-52.
    14. Anthony Atkinson, 2015. "Can we reduce income inequality in OECD countries?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 42(2), pages 211-223, May.
    15. Basu, Kaushik, 2015. "An Economist in the Real World: The Art of Policymaking in India," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262029626, September.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Biagi, Federico & Falk, Martin, 2017. "The impact of ICT and e-commerce on employment in Europe," Journal of Policy Modeling, Elsevier, vol. 39(1), pages 1-18.
    2. Rashid, Muhammad Mustafa, 2018. "Proliferation of Globalization and its Impact on Labor Markets in Advanced Industrial Nations and Developing Nations," MPRA Paper 90497, University Library of Munich, Germany.
    3. Basu, Kaushik, 2018. "The rise of Trump and an agenda for regulatory reform," Journal of Policy Modeling, Elsevier, vol. 40(3), pages 546-558.
    4. Orhun Sevinc, 2018. "Emerging Market Economies and Turkey in the Globalization Age," CBT Research Notes in Economics 1814, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
    5. Hichem Saidi, 2020. "Threshold effect of institutions on finance-growth nexus in MENA region: New evidence from panel simultaneous equation model," Economics Bulletin, AccessEcon, vol. 40(1), pages 699-715.
    6. Basu, Kaushik, 2019. "New Technology and Increasing Returns: The End of the Antitrust Century?," IZA Policy Papers 146, Institute of Labor Economics (IZA).
    7. Reddy, K.S. & Xie, En & Huang, Yuanyuan, 2016. "Cross-border acquisitions by state-owned and private enterprises: A perspective from emerging economies," Journal of Policy Modeling, Elsevier, vol. 38(6), pages 1147-1170.
    8. Das, Gouranga Gopal & Marjit, Sugata & Kar, Mausumi, 2020. "The Impact of Immigration on Skills, Innovation and Wages: Education Matters more than where People Come from," Journal of Policy Modeling, Elsevier, vol. 42(3), pages 557-582.
    9. Kaushik Basu, 2019. "Technology, Labor and Globalization: Contemporary Challenges," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(1), pages 1-13, March.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jpolmo:v:38:y:2016:i:4:p:656-669. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Haili He). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.