Labor in the Developed and Developing Worlds

Two older but related articles on the issue of costs of “Developed World” labor vs. “Developing World” labor:

Financial Times: In the Grip of a Great Convergence

The Fiscal Times: Multinationals Dump U.S. Workers for Foreign Labor

 

Differentials in the cost of labor are creating enormous strains. Note the chart below (from “Capturing Global Advantage[page 19] By Boston Consulting Group) – that in 2009 the average hourly cost for a production worker (including benefits) was $1.27 in China and $25.34 in the USA:

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Filed under Brazil, China, Developing Nations, Economy, Europe, India

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