Global labor arbitrage

Unequal exchange of labour in the world economy

Researchers have argued that wealthy nations rely on a large net appropriation of labour and resources from the rest of the world through unequal exchange in international trade and global commodity chains. Here we assess this empirically by measuring flows of embodied labour in the world economy from 1995–2021, accounting for skill levels, sectors and wages. We find that, in 2021, the economies of the global North net-appropriated 826 billion hours of embodied labour from the global South, across all skill levels and sectors. The wage value of this net-appropriated labour was equivalent to €16.9 trillion in Northern prices, accounting for skill level. This appropriation roughly doubles the labour that is available for Northern consumption but drains the South of productive capacity that could be used instead for local human needs and development. Unequal exchange is understood to be driven in part by systematic wage inequalities. We find Southern wages are 87–95% lower than Northern wages for work of equal skill. While Southern workers contribute 90% of the labour that powers the world economy, they receive only 21% of global income.

Labor-Value Commodity Chains: The Hidden Abode of Global Production - Monthly Review

Intan Suwandi is a frequent contributor to Monthly Review. This article is adapted from her book, Value Chains: The New Economic Imperialism, winner of the 2018 Paul M. Sweezy-Paul A.... READ MORE

Strategic interdependence is rewiring the global economy

It is no longer sufficient for the US-China trade relationship to be driven solely by cost and efficiency

interfluidity » The great game of global public goods provision

War is bad. Excuses should not be made for it. All sides should work to end this and every war as quickly as possible and shift to modes of bargaining and competition that are not profoundly destructive.

Handbook of Labor Economics

What new tools and models are enriching labor economics?Developments in Research Methods and their Application, Volume 4A summarizes recent advances in the ways economists study wages, employment, and labor markets. Mixing conceptual models and empirical work, contributors cover subjects as diverse as field and laboratory experiments, program evaluation, and behavioral models. The combinations of these improved empirical findings with new models reveal how labor economists are developing new and innovative ways to measure key parameters and test important hypotheses. - Investigates recent advances in methods and models used in labor economics - Demonstrates what these new tools and techniques can accomplish - Documents how conceptual models and empirical work explain important practical issues

CMV: The labor theory of value is flawed

72 votes, 407 comments. This might be an obscure topic, however, in some—largely Marxist circles— the approach seems to motivate much of the dialogue…

Offshoring

Offshoring is the relocation of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting. Usually this refers to a company business, although state governments may also employ offshoring. More recently, technical and administrative services have been offshored.

What will be scarce?

The economics of structural change and the post-commodity future of work

Technological Disruption in the US Labor Market • The Aspen Institute Economic Strategy Group

DAVID DEMING, CHRISTOPHER ONG, LAWRENCE H. SUMMERS This paper explores past episodes of technological disruption in the US labor market, with the goal of learning lessons about the likely future impact of artificial intelligence (AI). The authors measure changes in the structure of the US labor market going back over a century in two ways.&nbsp...

Do Employers Have More Monopsony Power in Slack Labor Markets?

This article confronts monopsony theory’s predictions regarding workers’ wages with observed wage patterns over the business cycle. Using German administrative data for the years 1985 to 2010 and an estimation framework based on duration models, the authors construct a time series of the labor supply elasticity to the firm and estimate its relationship to the unemployment rate. They find that firms possess more monopsony power during economic downturns. Half of this cyclicality stems from workers’ job separations being less wage driven when unemployment rises, and the other half mirrors that firms find it relatively easier to poach workers. Results show that the cyclicality is more pronounced in tight labor markets with low unemployment, and that the findings are robust to controlling for time-invariant unobserved worker or plant heterogeneity. The authors further document that cyclical changes in workers’ entry wages are of similar magnitude as those predicted under pure monopsonistic wage setting.

Anarchy and modern convenience

A major part of anarchy and socialism is the concept of anti-work. An obsession with work is a colonial, patriarchal, and capitalist construct. As such, the anti-work movement—a focus on working less overall and sharing labor more equally—is an important part of decolonization, feminism, and anti-capitalism. A common criticism of this is that reducing the amount everyone works to something like 20 hours a week instead of 40+ means we would have to give up a lot of conveniences.

Imperialist appropriation in the world economy: Drain from the global South through unequal exchange, 1990–2015

Unequal exchange theory posits that economic growth in the “advanced economies” of the global North relies on a large net appropriation of resources and labour from the global South, extracted through price differentials in international trade. Past attempts to estimate the scale and value of this drain have faced a number of conceptual and empirical limitations, and have been unable to capture the upstream resources and labour embodied in traded goods. Here we use environmental input-output data and footprint analysis to quantify the physical scale of net appropriation from the South in terms of embodied resources and labour over the period 1990 to 2015. We then represent the value of appropriated resources in terms of prevailing market prices. Our results show that in 2015 the North net appropriated from the South 12 billion tons of embodied raw material equivalents, 822 million hectares of embodied land, 21 exajoules of embodied energy, and 188 million person-years of embodied labour, worth $10.8 trillion in Northern prices – enough to end extreme poverty 70 times over. Over the whole period, drain from the South totalled $242 trillion (constant 2010 USD). This drain represents a significant windfall for the global North, equivalent to a quarter of Northern GDP. For comparison, we also report drain in global average prices. Using this method, we find that the South’s losses due to unequal exchange outstrip their total aid receipts over the period by a factor of 30. Our analysis confirms that unequal exchange is a significant driver of global inequality, uneven development, and ecological breakdown.

Labor Market Adaptation | Windfall Policy Atlas

How can workers, firms, and education systems adapt to an AI-transformed economy?

The Divide — Jason Hickel

The Divide: A Brief Guide to Global Inequality and its Solutions Penguin Random House UK, 2017