IDEAS home Printed from
   My bibliography  Save this paper

Globalisation and Labour Markets: Policy Issues Arising from the Emergence of China and India


  • David T. Coe


Globalisation is having important effects on labour markets in OECD countries. The global supply of labour has increased enormously with the emergence of China and India. At the same time technological advances have contributed to heightened income inequality and changed the nature of globalisation itself, most vividly demonstrated by the rapid growth of offshoring of business services that were previously nontradable. It is argued in this paper that these developments are best characterized as an intensification and broadening of the process of globalisation rather than a fundamental change in the nature of globalisation. They will, nevertheless, have long-lasting effects on OECD labour markets, increasing the urgency of implementing the labour market policies set out in the Restated OECD Job Strategy. The paper concludes that the most important implication of the emergence of China and India in the context of widespread perceptions of increasing economic inequality may be to reduce support for globalisation in OECD countries. La mondialisation a des effets importants sur les marchés du travail des pays de l’OCDE. L’offre mondiale de main-d'œuvre a augmenté considérablement avec l’émergence de la Chine et l’Inde. Dans le même temps, les progrès technologiques ont contribué à renforcer les inégalités de revenus et ont changé la nature même de la mondialisation, comme en témoigne la croissance rapide de la délocalisation des services aux entreprises, qui étaient auparavant non-échangeables. On fait valoir dans ce document que ces évolutions correspondent plus à une intensification et un élargissement du processus de mondialisation qu'à un changement fondamental de nature de la mondialisation. Elles auront, néanmoins, des effets durables sur les marchés du travail dans les pays de l'OCDE, et renforcent de ce fait l'urgence de mettre en œuvre les politiques du marché du travail identifiées dans «La stratégie de l'OCDE pour l'emploi révisée ». Le document conclut que, dans un contexte de perception accrue de croissance des inégalités économiques, la principale conséquence de l’émergence de la Chine et l’Inde peut être de réduire le soutien à la mondialisation dans les pays de l’OCDE.

Suggested Citation

  • David T. Coe, 2007. "Globalisation and Labour Markets: Policy Issues Arising from the Emergence of China and India," OECD Social, Employment and Migration Working Papers 63, OECD Publishing.
  • Handle: RePEc:oec:elsaab:63-en
    DOI: 10.1787/057638253043

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:oec:elsaab:63-en. 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: (). 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.

    We have no references for this item. You can help adding them by using 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.