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Globalization of labor markets and the growth prospects of nations

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  • Basu,Kaushik

Abstract

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.

Suggested Citation

  • Basu,Kaushik, 2016. "Globalization of labor markets and the growth prospects of nations," Policy Research Working Paper Series 7590, The World Bank.
  • Handle: RePEc:wbk:wbrwps:7590
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    References listed on IDEAS

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    7. 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.
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    10. 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, March.
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    12. Daron Acemoglu, 2003. "Labor- And Capital-Augmenting Technical Change," Journal of the European Economic Association, MIT Press, vol. 1(1), pages 1-37, March.
    13. Nanak Kakwani & Hyun H. Son, 2015. "Income inequality and social well-being," Working Papers 380, ECINEQ, Society for the Study of Economic Inequality.
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    Citations

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    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. Basu, Kaushik, 2019. "New Technology and Increasing Returns: The End of the Antitrust Century?," IZA Policy Papers 146, Institute of Labor Economics (IZA).
    3. 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.
    4. 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.
    5. repec:eee:jpolmo:v:40:y:2018:i:3:p:546-558 is not listed on IDEAS
    6. 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.

    More about this item

    Keywords

    Rural Labor Markets; Industrial Economics; Economic Growth; Economic Theory&Research; Labor Markets;

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