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Has globalization shrunk manufacturing labor share in transition economies?
Journal of Comparative Economics ( IF 2.8 ) Pub Date : 2020-07-01 , DOI: 10.1016/j.jce.2020.07.010
Marjan Petreski

Abstract The objective of this paper is to investigate the nexus between the labor share and globalization in transition economies, with a reference to the skill intensity. We put these developments in the context of the structural and reform developments in transition economies. We rely on the predictions of the efficient bargaining model, whereby globalization forces are set to affect workers’ market bargaining power, which then produces certain developments in the labor share. We use industry-level data for 23 transition economies of Central and Southeast Europe and the Commonwealth of Independent States over the late transition period of 2000–2015. Results robustly suggest that globalization forces played important role for the stagnant labor shares in transition economies, mainly in low-skill industries. Workers’ shares in high-skill industries largely remained intact. Results further suggest that the negative effect has been the strongest for the low-skilled workers in the early transition phase and then lessened or vanished as countries turned a higher development stage. The key finding advises that if governments of transition countries attempted to or undertook steps to seize globalization by offering ‘cheap labor’, then it has been the wrong strategy.

中文翻译:

全球化是否缩小了转型经济体的制造业劳动力份额?

摘要 本文的目的是研究转型经济体中劳动力份额与全球化之间的关系,并参考技能强度。我们将这些发展放在转型经济体的结构和改革发展的背景下。我们依赖于有效谈判模型的预测,即全球化力量将影响工人的市场谈判能力,从而产生劳动力份额的某些发展。我们使用了 2000 年至 2015 年过渡后期的中欧和东南欧以及独立国家联合体的 23 个转型经济体的行业级数据。结果有力地表明,全球化力量对转型经济体(主要是低技能行业)的劳动力份额停滞起到了重要作用。高技能行业的工人份额基本保持不变。结果进一步表明,在早期转型阶段对低技能工人的负面影响最强,然后随着国家进入更高的发展阶段而减弱或消失。关键发现表明,如果转型国家的政府试图或采取措施通过提供“廉价劳动力”来抓住全球化,那么这就是错误的策略。
更新日期:2020-07-01
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