Globalization, Wages, and the Quality of Jobs

Description

Since the early 1990s, most developing economies have become more integrated with the world's economy. Trade and foreign investment barriers have been progressively lifted and international trade agreements signed. These reforms have led to important changes in the structures of these economies. The labor markets have adjusted to these major changes, and workers were required to adapt to them in one way or another.
In 2006, the Social Protection Unit of the World Bank launched an important research program to understand the impact that these profound structural changes have had on workers in developing countries. 'Globalization, Wages, and the Quality of Jobs: Five Country Studies' presents the findings and insights of this important research program. In particular, the authors present the similar experiences of low-income countries with globalization and suggest that low-income countries' working conditions have improved in the sectors exposed to globalization. However, 'Globalization, Wages, and the Quality of Jobs' also highlights concerns about the sustainability of these improvements and that the positive demonstration effects on the rest of the economy are unclear.
The empirical literature that exists, although vast, does not lead to a consensus view on globalization's eventual impact on labor markets. Understanding the effects of globalization is crucial for governments concerned about employment, working conditions, and ultimately, poverty reduction. Beyond job creation, improving the quality of those jobs is an essential condition for achieving poverty reduction. 'Globalization, Wages, and the Quality of Jobs' adds to the existing literature in two ways. First, the authors provide a comprehensive literature review on the current wisdom on globalization and present a micro-based framework for analyzing globalization and working conditions in developing countries. Second, the authors apply this framework to five developing countries: Cambodia, El Salvador, Honduras, Indonesia, and Madagascar. This volume will be of interest to government policy makers, trade officials, and others working to expand the benefits of globalization to developing countries.

Informations

• Publié par: world-bank-publications
• Publié le: 17 juillet 2009
• Nombre de lectures: 16
• EAN13: 9780821379554
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

Raymond Robertson,
Drusilla Brown, Gaëlle Pierre, and
María Laura Sanchez-Puerta, Editors
Five Country
Studies
,Globalization
,Wa g e s and the
Quality of JobsGlobalization, Wages, and
the Quality of Jobs
FIVE COUNTRY STUDIESGlobalization, Wages, and
the Quality of Jobs
FIVE COUNTRY STUDIES
Raymond Robertson, Drusilla Brown, Gaëlle Pierre,
and María Laura Sanchez-Puerta
Editors© 2009 The International Bank for Reconstruction and Development / The World Bank
1818 H Street NW
Washington DC 20433
Telephone: [phone]
Internet: www.worldbank.org
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All rights reserved
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This volume is a product of the staff of the International Bank for Reconstruction and Development / The
World Bank. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect
the views of the Executive Directors of The World Bank or the governments they represent.
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ISBN: 978-0-8213-7934-9
eISBN: 978-0-8213-7955-4
DOI: 10.1596/978-0-8213-7934-9
Library of Congress Cataloging-in-Publication Data
Globalization, wages, and the quality of jobs : five country studies / edited by Raymond Robertson ... [et al.].
p. cm.
Includes bibliographical references and index.
ISBN 978-0-8213-7934-9 (alk. paper) — ISBN 978-0-8213-7955-4
1. Labor market—Developing countries. 2. Labor—Social aspects—Developing countries. 3. Inter-
national trade—Social aspects. 4. Developing countries—Commerce. I. Robertson, Raymond, 1969- II.
World Bank.
HD5852.G58 2009
331.1209172'4—dc22
2009008336
Cover photos by: top left: copyright Bryan Blakely/iStockPhoto.com; top right: copyright alandj/iStock
Photo.com; bottom left: copyright Mikhail Malyshev/iStockPhoto.com; bottom right: copyright Dan Cooper/
iStockPhoto.com; background: copyright Rob Belknap/iStockPhoto.com.
Cover design by: Serif Design, Inc.Contents
Preface ........................................................................................................... xi
Acknowledgments ...................................................................................... xiii
Contributors ................................................................................................. xv
Abbreviations ............................................................................................. xvii
1. Overview: The Promises and Perils of Globalization .......................... 1
Raymond Robertson, Drusilla Brown, Gaëlle Pierre, and María Laura Sanchez-Puerta
T e Links between Globalization and Working Conditions: Concepts and
Analytical Framework 2
Applying the Framework: Lessons from Five Country Studies ................................6
T eoretical Considerations: T e Apparel Sector ......................................................9
Looking Ahead .....................................................................................................14
Notes .................................................................................................................... 17
References and Other Resources ...........................................................................18
2. A Review of the Globalization Literature: Implications for
Employment, Wages, and Labor Standards ....................................... 21
Drusilla Brown
Trade and Employment ........................................................................................21
Trade and Wages ...................................................................................................23
International Trade and Working Conditions .......................................................29
Foreign Direct Investment and the Labor Market .................................................33
Private, Voluntary, and Intergovernmental Agreements and
Working Conditions .............................................................................................42
Intergovernmental Agreements on Trade and Labor Practices ...............................49
Conclusions .......................................................................................................... 51
Notes .................................................................................................................... 52
References ............................................................................................................. 52
3. Globalization and Working Conditions: A Framework for
Country Studies .................................................................................... 63
Raymond Robertson
Defi ning Globalization .........................................................................................64
Defi ning Working Conditions ..............................................................................70
vvi GLOBALIZATION, WAGES, AND THE QUALITY OF JOBS: FIVE COUNTRY STUDIES
T eoretical Framework for Determining the Eff ects of Globalization
on Working Conditions ........................................................................................76
Application: Step-by-Step .....................................................................................83
Technical Annex: Empirical Methodology ............................................................88
Notes .................................................................................................................... 91
References ............................................................................................................. 92
4. Globalization and Working Conditions: Evidence
from Cambodia 97
Samsen Neak and Raymond Robertson
Globalization in Cambodia ...................................................................................98
Globalization’s Eff ects on Working Conditions: A Qualitative Analysis ...............103
Household Survey Analysis .................................................................................108
Working Conditions ...........................................................................................112
Conclusions ........................................................................................................ 116
Notes .................................................................................................................. 117
References ........................................................................................................... 118
Annex A: Results of Monitoring from the ILO Better Factories
Cambodia Project ...............................................................................................120
5. The Effects of Globalization on Working Conditions:
El Salvador, 1995–2005....................................................................... 131
Raymond Robertson and Alvaro Trigueros-Argüello
Globalization in El Salvador ...............................................................................131
Working Conditions in El Salvador ....................................................................143
Empirical Analysis ..............................................................................................148
Nonwage Aspects of Working Conditions in El Salvador ....................................161
Conclusions ........................................................................................................ 169
Notes .................................................................................................................. 171
References ........................................................................................................... 172
6. Globalization and Working Conditions: Evidence
from Honduras .................................................................................... 175
Douglas Marcouiller and Raymond Robertson
Globalization in Honduras .................................................................................176
Working Conditions in Honduras ......................................................................183
Employment and Interindustry Wage Diff erentials ...............