Getting a better deal for the world's workers

Ultimately, boosting labour earnings and the dignity of work requires both strengthening workers’ bargaining power and increasing the supply of good jobs for those who most need them. That would give all workers a better deal and a fair share of future prosperity, writes  Dani  Rodrik

Since 1979,US labour market insecurity and inequality rose, and many communities were left behind as factories closed and jobs migrated elsewhere. Picture: Getty

The last four decades of globalisation and technological innovation have been a boon for those with the skills, wealth, and connections to take advantage of new markets and opportunities. Ordinary workers have had much less to cheer about.

In advanced economies, earnings for those with less education often stagnated despite gains in overall labour productivity. Since 1979, for example, US production workers’ compensation has risen by less than a third of the rate of productivity growth. Labour-market insecurity and inequality rose, and many communities were left behind as factories closed and jobs migrated elsewhere.