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ILO – WTO Making Globalization Making Globalization Socially Sustainable Socially Sustainable Globalization is widely seen as a powerful engine that Making Globalization Socially Sustainable has the potential to promote growth and development. For many years, however, concerns have also been raised about the eff ects of globalization on jobs and wages. This has led to questions about the social sustainability of globalization. Jointly published by the International Labour Offi ce and the Secretariat of the World Trade Organization, with funding by the International Chamber of Commerce, this publication consists of contributions by leading academic experts who analyse the various channels through which globalization aff ects jobs and wages. Together, the nine chapters in this volume summarize state-of-the art knowledge on themes related to the social dimension of globalization. The volume, therefore, represents a step in the direction of a better understanding of the mechanisms through which globalization aff ects workers and of the measures that governments can take to give globalization a strong social dimension. It will be of value to all those who are interested in the debate on the social sustainability of globalization, including workers and Edited by employers, policy-makers, academics, and other trade Marc Bacchetta and and labour specialists. Marion Jansen WTO ISBN 978-92-870-3783-1 ILO ISBN 978-92-2-124583-4 MGSS cover ideas-May11.indd 1 31/08/2011 14:16 MAKING GLOBALIZATION SOCIALLY SUSTAINABLE Edited by Marc Bacchetta and Marion Jansen International Labour Office – Geneva Disclaimer The designations employed in ILO and WTO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office or the World Trade Organization concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. WTO state and territory denominations have been utilized in this publication, as its membership basis (states, as well as separate customs territories) is broader than that of the ILO. The responsibility for opinions expressed in studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International Labour Office or the World Trade Organization of the opinions expressed in them. Reference to names of firms and commercial products and processes does not imply their endorsement by the International Labour Office or the World Trade Organization, and any failure to mention a particular firm, commercial product or process is not a sign of disapproval. Copyright © 2011 International Labour Organization and World Trade Organization. Reproduction of material contained in this document may be made only with the written permission of the WTO Publications Manager. WTO ISBN 978-92-870-3783-1 ILO ISBN 978-92-2-124583-4 Also available in French and Spanish: French title ILO ISBN 978-92-2-224583-3 / WTO ISBN 978-92-870-3784-8 Spanish title ILO ISBN 978-92-2-324583-2 / WTO ISBN 978-92-870-3785-5 ILO and WTO publications can be obtained through major booksellers or: ILO Publications International Labour Office CH-1211 Geneva 22 Switzerland Email: pubvente@ilo.org Web site: www.ilo.org/publns WTO Publications World Trade Organization 154 rue de Lausanne CH-1211 Geneva 21 Switzerland Tel: + 41 22 739 52 08 Fax: + 41 22 739 54 58 Email: publications@wto.org Web site: www.wto.org Online WTO bookshop: http://onlinebookshop.wto.org Printed by WTO Secretariat, Switzerland, 2011. Contents Foreword xi Notes on contributors xiii Acknowledgements xv Introduction 1 Marc Bacchetta and Marion Jansen Globalization and employment 3 Globalization and uncertainty 8 Globalization and inequality 12 Open questions 16 1 Globalization, offshoring and jobs 21 Holger Görg 1.1 Introduction 21 1.2 Globalization and (un)employment 22 1.3 Globalization and the changing industrial structure 37 1.4 Policy implications 39 2 Globalization, structural change and productivity growth 49 Margaret McMillan and Dani Rodrik 2.1 Introduction 49 2.2 The data and some stylized facts 51 2.3 Patterns of structural change and productivity growth 63 2.4 What explains these patterns of structural change? 75 2.5 Concluding comments 78 Appendices A2.1 Data description 79 A2.2 Supplementing the 10-Sector Database 80 iii
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