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    Is Employment Globalizing?

    Chen, Liming; Felipe, Jesus; Kam, Andrew J.Y.; Mehta, Aashish | September 2018
    Abstract
    We investigate the claim that national labor markets have become more globally interconnected in recent decades. We do so by deriving estimates over time of three different notions of interconnection: (i) the share of labor demand that is export induced (i.e., all labor demand created by foreign entities buying products exported by the home country)—we provide estimates for 40 countries; (ii) the share of workers employed in sectors producing tradable goods or services—68 countries; and (iii) the ratio of the number of jobs that are either located in a tradable sector, or that are involved in producing services that are required by these tradable sectors, to all jobs in the economy, which we call the trade-linked employment share—40 countries. Our estimates lead to the conclusion that the evidence of a large increase in the interconnections between national labor markets is far weaker than commonly asserted: levels of interconnectivity, and the direction of changes over time, vary across notions of interconnection and countries. The main reasons for this are labor displacing productivity growth in tradable sectors of each economy and the diminishing fraction of national labor forces hired into manufacturing jobs worldwide. We also discuss the implications of our results for different policy debates that each of the three measures is associated with: international coordination of macroeconomic policies (export-induced labor demand), currency devaluations (share of workers producing tradables), and education and labor protection (trade-linked share).
    Citation
    Chen, Liming; Felipe, Jesus; Kam, Andrew J.Y.; Mehta, Aashish. 2018. Is Employment Globalizing?. © Asian Development Bank. http://hdl.handle.net/11540/8733. License: CC BY 3.0 IGO.
    ISSN
    2313-6537 (print)
    2313-6545 (electronic)
    Keywords
    Development
    Trade
    Development Goals
    Skills Development
    Sustainable Development
    Trade Flows
    Trade And Development
    Food Security And Trade
    Trade Volume
    Trade Potential
    Trade Flows
    External Trade
    Industrial policy
    New technology
    Innovations
    Industry
    Export policy
    Import policy
    Trade Unions
    Development assistance
    ADB
    Curriculum development
    Development assistance
    Development aid
    Development indicators
    Development potential
    Development models
    Project appraisal
    Performance appraisal
    Regional development bank
    Trade development
    Import volume
    Export volume
    Capital
    Business
    Communication in rural development
    Social participation
    Occupational training
    Partnership
    Joint venture
    System analysis
    Labor and globalization
    Labor policy
    Regional trading blocs
    Foreign trade and employment
    Developing countries
    Industrial priorities
    Technological innovation
    Technology transfer
    Foreign trade regulation
    Industrial relations
    Trade-unions
    Show allCollapse
    Citable URI
    http://hdl.handle.net/11540/8733
    Metadata
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    ewp-556-employment-globalizing.pdf (967.2Kb)
    Author
    Chen, Liming
    Felipe, Jesus
    Kam, Andrew J.Y.
    Mehta, Aashish
    Theme
    Development
    Trade
    Labor Migration
     
    Copyright 2016-2020 Asian Development Bank Institute, except as explicitly marked otherwise
    Copyright 2016-2020 Asian Development Bank Institute, except as explicitly marked otherwise