Better Jobs Mean Better Development – Dani Rodrik/Project Syndicate
“Manufacturing industries are no longer the labor-absorbing sectors they used to be, and that is a big problem for developed and developing economies alike. Achieving sustainable, inclusive growth will now depend on creating opportunities in services – a sector not generally associated with good, productive jobs.“
Rodrik’s article presents paradoxes. Calling for more productive jobs implies lower wages. Calling for better jobs implies higher wages. New technology can result in both higher wages and higher productivity but that assumes workers have enough bargaining power to increase their share of profits. Replacement of labor with capital also means fewer jobs, which can decrease workers’ leverage over wages and working conditions.