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

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©OECD Observer No 296, Q3 2013

Economic data

GDP growth: -9.8% Q2/Q1 2020 2020
Consumer price inflation: 1.3% Sep 2020 annual
Trade (G20): -17.7% exp, -16.7% imp, Q2/Q1 2020
Unemployment: 7.3% Sep 2020
Last update: 10 Nov 2020

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