Globalisation, Labour Markets, and Social Outcomes in Developing Countries

In this paper we seek to examine the relationship between globalisation in its current form and social outcomes (in particular, poverty and inequality) in developing countries with special reference to channels of causation that involve the effects of globalisation on labour markets. In particular, we focus on the effect of the current form of globalisation on employment, wages, and working conditions, and thereby on poverty and inequality. A priori dogmas concerning the impact of the current form of globalisation on social outcomes are not borne out by microeconomic theory or evidence, which suggests that the empirical impact has been mixed, and dependent on various pertinent factors. The state of knowledge suggests caution in the pursuit of any one macroeconomic prescription, and draws attention to the importance of complementary microeconomic measures directly aimed at the outcomes of concern