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
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                 The responsibility for opinions expressed in studies and other contributions rests solely 
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                 International Labour Office or the World Trade Organization of the opinions expressed 
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                 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
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                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