The Effects of Globalization on Working Conditions in Developing Countries : An Analysis Framework and Country Study Results
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World Bank, Washington, DC
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Globalization defined as falling
barriers to, and the increase in, trade, migration, and
investment across borders directly affects workers in both
developed and developing countries. While most global trade
and investment is between the developed countries,
globalization has increased dramatically in a number of
developing countries. Understanding the effects of
globalization is critical for governments concerned about
employment, working conditions, and, ultimately, poverty
reduction. Broadly defined, working conditions include wages
and other key job characteristics including (but not
necessarily limited to) health and safety, hours, security,
benefits, and representation. These conditions have direct
and indirect effects on the risk of falling or staying in
poverty. This note outlines an approach for a systematic
cross-country comparison of the relationship between
globalization and working conditions. In addition, the
results from applying this approach to five countries
(Cambodia, El Salvador, Honduras, Indonesia, and Madagascar)
are presented. The country study results described in this
note support the hypothesis that globalization has
contributed to a shift of workers from sectors with low wage
and poor non-wage working conditions (i.e., agriculture) to
sectors with relatively higher wages and better non-wage
working conditions.
Palabras clave
AVERAGE WAGE, CORE LABOR STANDARDS, DEMOCRACY, DOMESTIC MARKET, DOMESTIC WORKERS, ECONOMIC CONDITIONS, ECONOMICS, EMPLOYMENT, EMPLOYMENT GROWTH, EMPLOYMENT POLICY, EMPLOYMENT SHARE, EXPORT PROCESSING ZONES, FOREIGN INVESTMENT, HIGH WAGES, INCOME, INDUSTRY WAGE, INTERNATIONAL LABOR ORGANIZATION, INTERNATIONAL MARKETS, INTERNATIONAL MIGRATION, JOBS, LABOR DEMAND, LABOR FORCE, LABOR MARKET, LABOR MARKET POLICY, LABOR MARKET SEGMENTATION, LABOR MARKETS, LABOR ORGANIZATION, LABOR STANDARDS, LOW WAGES, MARKET ECONOMY, OVERTIME, PRELIMINARY EVIDENCE, RENTS, SAFETY, SOCIAL BENEFITS, TRADE LIBERALIZATION, WAGE DATA, WAGE DIFFERENTIALS, WAGE PREMIUM, WAGE PREMIUMS, WAGES, WORKER, WORKING, WORKING CONDITIONS, WORKING ENVIRONMENT, YOUNG WORKERS