Rather than seeing globalisation as a threat, OECD governments should focus on improving labour regulations and social protection systems to help people adapt to changing job markets.
That is the message from the 2007 edition of the OECD’s annual Employment Outlook. It reviews the possibility that offshoring may have reduced the bargaining power of workers, especially low-skilled ones. Whether real or threatened, the prospect of offshoring may be increasing the vulnerability of jobs and wages in developed countries.
Wage inequality is also rising. In 18 of the 20 OECD countries where data exist, the gap between top earners and those at the bottom has risen since the early 1990s. Ireland and Spain are the only exceptions to this trend (see graph).
The OECD report makes a number of recommendations on policies governments should put in place to create more and better jobs.
See full Press Release.
Posts
