Does globalization weaken labor unions in developing countries?

For a developing economy with a given urban wage rate, globalization in capital markets strengthens labor unions. This result hinges on the fixed urban wage rate, which leads to a constant capital–labor ratio in the urban sector. Globalization via capital inflows not only enhances the employment effect of unionization but also reduces the rent-shifting related loss in production inefficiency to domestic capital, lending a support to labor unions for developing economies. This result is contrary to the common belief that labor unions tend to be weakened during the globalization process observed after 1980s in many developed economies.

A dynamic model of tourism, employment and welfare: the case of Hong Kong

The present paper uses a dynamic open-economy model with wage indexation to examine the impact of tourism on employment and welfare. Both short-run and long-run situations are analysed. It is well known that tourism converts non-traded goods into tradable goods. An increase in the demand for a non-traded good raises its relative price, which results in an expansion of the non-traded sector at the expense of the traded goods sector. This output shift raises labour employment in the short run. However, in the long run, the higher relative price leads to higher wages, resulting in a negative impact on labour employment. If the output effect is dominant, the expansion in tourism raises employment and welfare. However, under realistic conditions tourism may lower both labour employment and welfare due to rising costs. These results are demonstrated by simulating a dynamic model for the case of Hong Kong.

Migrants as Homo economicus : explaining the emerging phenomenon of a shortage of migrant labor in China's coastal provinces

The problem of a shortage of migrant labor is a new development in China's coastal provinces. We discuss the reasons for this emerging phenomenon using a conceptual framework that extends the traditional Lewis dualistic labor market model to incorporate a migrant labor market. We emphasize that migrant labor shortage in China not only reflects a declining wage gap between what peasants receive and what migrants can earn in the cities, but also the institutional legacies of the planning era such as the hukou (household registration) system which discriminates against migrants vis-a-vis urban residents in terms of access to social insurance and other social services. We proceed to draw on a unique survey of migrants and urban residents collected in Jiangsu to show that migrants receive lower incomes, and they have poorer access to social insurance than those with an urban registration in China's cities. Our findings have important implications for the alleviation of the migrant labor shortage problem.

Medical tourism and health worker migration in developing countries

In developing countries of tourist destinations, an increase in medical tourism raises the wages in the medical tourism sector, thereby retaining skilled medical workers who otherwise leave the country. However, the expansion of medical tourism contracts the domestic healthcare services sector, causing lower labor productivity in the economy. Medical tourism can increase domestic welfare if the benefits from migration retention and tourism exports outweigh the losses in revenue and productivity declines.

Itinerant foreign harvest workers in Australia: the impact of precarious employment on occupational safety and health

Horticulture work in many high-income economies is increasingly performed by temporary migrant workers from low-wage economies. In Australia, such work is now performed predominantly by international backpackers – young well-educated workers with mostly sound English language skills. These workers are drawn to harvesting work by a government scheme which provides an incentive for completing a specified number of days work in horticulture. This article examines the health and safety experience of these workers, through focus groups, interviews and an online survey. Notwithstanding their distinctive backgrounds, the harvesting experience of these temporary migrant workers is similar to that of low-skilled migrants working in other high-income countries. Health and safety risks associated with work organisation and payment systems, and a lack of compliance with OHS legal requirements, are commonplace but potentially compounded by a sense of invincibility amongst these young travellers. Furthermore, a growing pool of undocumented workers is placing downward pressures on their employment conditions. The vulnerability associated with work and earnings uncertainty, and the harsh environment in which harvesting work occurs, remains a constant notwithstanding the background of these workers.

How do cross-border mergers and acquisitions affect firms’ management and stakeholders? Part 2

The effect of mergers and acquisitions (M&A) on different stakeholders is dependent on a number of factors. These factors can include but are not limited to: the type of M&A; each firm's reasons for the M&A; the offer amount; the product market of both the acquirer and target firms; the political environment; the economic environment; and the current situation of each firm. Employees play a significant role in businesses in which employee satisfaction affects the quality and quantity of business output. Firms interested in embarking on cross-border mergers have new employees to manage and must determine an appropriate wage to match the level of productivity of target employees. Wages may need to be altered as a result of employee relocation; employee compensation can be a complex matter, as the cost of living in each area varies greatly.