Summary and Conclusions

Adrian Wood

in North-South Trade, Employment and Inequality

Published in print July 1995 | ISBN: 9780198290155
Published online November 2003 | e-ISBN: 9780191597015 | DOI:

Series: IDS Development Studies

 Summary and Conclusions

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Expansion of trade in manufactures between developed and developing countries has had a far greater effect on labour markets than earlier research suggested. In developing countries (the South),unskilled workers have benefited most from this trade, but in developed countries (the North) the gains have been concentrated on those with skills, while unskilled workers have suffered falling wages and rising unemployment, which has worsened income distribution and aggravated other social problems. The failure of Northern governments to recognize what is happening has fuelled the rise of protection—the worst possible response, which slows development in both regions. The best solution for the North in the longer term is more investment in education, but in the near term, other measures are needed to boost the demand for, and incomes of, unskilled workers.

Keywords: development; distribution; education; labour markets; protection; skills; trade; unemployment; wages

Chapter.  10926 words.  Illustrated.

Subjects: International Economics

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