Globalization and Workers in Developing Countries

44 Pages Posted: 20 Apr 2016

Multiple version iconThere are 2 versions of this paper

Date Written: January 31, 2003

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 context of globalization.

Keywords: Banks & Banking Reform, Public Health Promotion, Health Monitoring & Evaluation, Economic Theory & Research, Environmental Economics & Policies, Labor Policies, Free Trade

Suggested Citation

Rama, Martin, Globalization and Workers in Developing Countries (January 31, 2003). World Bank Policy Research Working Paper No. 2958. Available at SSRN: https://ssrn.com/abstract=2660590

Martin Rama (Contact Author)

World Bank ( email )

1818 H. Street, N.W.
Washington, DC 20433
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
749
Abstract Views
2,260
rank
2,547
PlumX Metrics