Life After Crisis For Labor And Capital in the Era of Neoliberal Globalization
The aim of this paper is to discuss the outcomes of neoliberal globalization from the perspective of labor in the developing countries, with a particular emphasis on the crises that followed the substantial liberalization in capital accounts in the 1990s. Although a lot has been said about the effects of capital account liberalization on the macroeconomic performance of the economies, less attention is paid to the different effects on labor vs. capital. This paper analyses the outcomes of neoliberal globalization for labor in nine developing countries, and focuses on the episodes of crisis as part of the general class struggle where the question on who will carry the burden of adjustment is a part of the struggle. The paper describes the corner stones of the regime of growth in the neoliberal era, by analyzing the trends in growth, investment, unemployment, and labor’s share in income, and discusses the effects of the shocks generated by crises on these variables. We empirically test whether the lower wage share has had any effect on unemployment, as the neoclassical theory claims, or whether unemployment is primarily driven by the goods market conditions a la Keynes. An empirical analysis about the cyclical behaviour of labor’s share is carried on to understand whether the crises episodes change the effect of demand on distribution. Since the source of growth can also be important on how the generated output is distributed, we also discuss the effects of investment performance on labor’s share. Then we proceed with an analysis of the specific consequences of economic policy choices on distribution, in terms of exchange rate and fiscal policies. Finally we discuss the core stones of an alternative policy framework.
|Date of creation:||Dec 2004|
|Date of revision:|
|Contact details of provider:|| Postal: Welthandelsplatz 1, 1020 Vienna, Austria|
Web page: http://www.wu.ac.at/economics/en
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.:
- Dollar, David & Kraay, Aart, 2001.
"Trade, growth, and poverty,"
Policy Research Working Paper Series
2615, The World Bank.
- Peter R. Fallon & Robert E. B. Lucas, 2000.
"The Impact of Financial Crises on Labor Markets, Household Incomes and Poverty: A Review of Evidence,"
Boston University - Institute for Economic Development
103, Boston University, Institute for Economic Development.
- Peter R. Fallon & Robert E. B. Lucas, 2002. "The Impact of Financial Crises on Labor Markets, Household Incomes, and Poverty: A Review of Evidence," World Bank Research Observer, World Bank Group, vol. 17(1), pages 21-45.
- James Crotty & Kang-Kook Lee, 2002. "A political-economic analysis of the failure of neo-liberal restructuring in post-crisis Korea," Cambridge Journal of Economics, Oxford University Press, vol. 26(5), pages 667-678, September.
- Gary Dymski & James Crotty, 2000. "Can the Global Neoliberal Regime Survive Victory in Asia? The Political Economy of the Asian Crisis," Published Studies ps5, Political Economy Research Institute, University of Massachusetts at Amherst.
- Yïlmaz AKYÜZ, 2000. "The Debate On The International Financial Architecture: Reforming The Reformers," UNCTAD Discussion Papers 148, United Nations Conference on Trade and Development.
- Harrison, Ann, 2005. "Has Globalization Eroded Labor’s Share? Some Cross-Country Evidence," MPRA Paper 39649, University Library of Munich, Germany.
- Kang-Kook Lee & James Crotty, 2004. "Was the IMF's Imposition of Economic Regime Change Justified? A Critique of the IMF's Economic and Political Role in Korea During and After the Crisis," Working Papers wp77, Political Economy Research Institute, University of Massachusetts at Amherst.
- Özlem Onaran & Engelbert Stockhammer, 2005.
"Two Different Export-Oriented Growth Strategies: Accumulation and Distribution in Turkey and South Korea,"
Emerging Markets Finance and Trade,
Taylor & Francis Journals, vol. 41(1), pages 65-89, January.
- Özlem Onaran & Engelbert Stockhammer, 2005. "Two Different Export-Oriented Growth Strategies: Accumulation and Distribution in Turkey and South Korea," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., vol. 41(1), pages 65-89, January.
- Philip Arestis, 2002. "Financial crisis in Southeast Asia: dispelling illusion the Minskyan way," Cambridge Journal of Economics, Oxford University Press, vol. 26(2), pages 237-260, March.
- Bosch, Gerhard & Lehndorff, Steffen, 2001. "Working-Time Reduction and Employment: Experiences in Europe and Economic Policy Recommendations," Cambridge Journal of Economics, Oxford University Press, vol. 25(2), pages 209-43, March.
- Dorothy Power & Gerald Epstein, 2003. "Rentier Incomes and Financial Crises: An Empirical Examination of Trends and Cycles in Some OECD Countries," Working Papers wp57, Political Economy Research Institute, University of Massachusetts at Amherst.
- James Crotty, 2000.
"Structural Contradictions of the Global Neoliberal Regime,"
Review of Radical Political Economics,
Union for Radical Political Economics, vol. 32(3), pages 361-368, September.
- James Crotty, 2000. "Structural Contradictions of the Global Neoliberal Regime," Published Studies ps6, Political Economy Research Institute, University of Massachusetts at Amherst.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwgee:geewp43. 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: (Department of Economics)
If references are entirely missing, you can add them using this form.