Cheaper global labour

Readers' Views No 296, Q3 2013
OECD Observer

Technology may be one of the factors decreasing the income share in OECD countries, but this is not true for developing countries. Studies show technology spill-overs actually increase income share in developing countries.

The difference should be distinguished in the article ("Good Jobs Bad Jobs", OECD Insights Blog, August 2013). Also, globalisation was left out as a main factor. It is affecting labour share at a more significant level than technology. Globalisation has led to the entrance of many workers from labour-abundant countries, increasing competition in the labour market.

Not to mention that companies have been practising off-shoring or at least threatening this option in order to keep wages from rising. Technology is a factor, but it shouldn't be overplayed.

—Carissa Faulkner, posted on www.oecdinsights.org

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©OECD Observer No 296, Q3 2013




Economic data

GDP growth: +0.6% Q4 2017 year-on-year
Consumer price inflation: 2.2% Feb 2018 annual
Trade: +2.7% exp, +3.0% imp, Q4 2017
Unemployment: 5.4% Feb 2018
Last update: 11 Apr 2018

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