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41. Can ASEAN Expand Vocational Training to Help Workers Survive Automation and AI?

Author:
William 'Whit' Lloyd
Publication Date:
12-2020
Content Type:
Commentary and Analysis
Institution:
East-West Center
Abstract:
The countries of the Association of Southeast Asian Nations (ASEAN) have cumulatively vaulted from the world’s seventh-largest economy to the fifth, in 2019, in only three years. But several challenges threaten future economic growth. Chief among them is demographic change: populations across ASEAN are aging and birthrates are declining. One outcome will be labor shortages. The shrinking labor pool could serve as a strong driver for automation. But while automation may reduce input costs and boost growth, it could change the skills employers desire, resulting in the obsolescence of many low-skilled jobs, leaving current workers without the skills necessary to obtain work. Upskilling labor through vocational education and related programs is the obvious response. But ASEAN education systems have never included significant vocational opportunities. With technological change accelerating, ASEAN states will need help with the herculean task of rapidly remodeling their education systems.
Topic:
Labor Issues, Employment, Vocational Training, Artificial Intelligence, Automation, and ASEAN
Political Geography:
Asia and Southeast Asia

42. Immigration and Racism in Japan: Litmus test for liberal democracy?

Author:
Eric Chung, Atsuko Abe, Garcia Liu-Farrer, Michael Sharpe, and Takako Hikotani
Publication Date:
11-2020
Content Type:
Video
Institution:
Weatherhead East Asian Institute, Columbia University
Abstract:
This event will discuss the growing debate around whether or not Japan will become a country of immigration and the related and under addressed subject of racism. Japan is one of the few liberal democracies in the world to have successfully resisted immigration in its postwar economy. However, in the last twenty years, immigration in Japan has increased substantially with various side doors for unskilled labor as well as official entry points for skilled labor with options for fast tracked permanent residency. In 2018, Prime Minister Abe proposed some 500,000 unskilled workers by 2025 to fill jobs in industries with labor shortages while at the same time declaring that this is not an immigration policy. In the face of ageing population and low birthrate, Japan find itself at a crossroads of whether, how, and when to accept the increasing reality of immigration as a solution to its demographic decline and labor shortage. Will Japan follow the path of Western liberal democracies in accepting immigrants and extending rights of citizenship? How are immigrants being received? Do immigrants exercise political rights and build coalition with other marginalized groups? What is the role of race, ethnicity, and racism in all of this? Will Japan go the way of Western liberal democracies or in the direction of illiberal autocracies such as Saudi Arabia or United Arab Emirates. This event will provide an opportunity to discuss issues of immigration and racism in Japan. It will bring together leading scholars in the field of immigration and racism with a focus on Japan.
Topic:
Demographics, Labor Issues, Immigration, Democracy, and Racism
Political Geography:
Japan and Asia

43. Gender Discrimination in the Workplace: China from a Global Comparative Perspective

Author:
Rong Zhao
Publication Date:
10-2020
Content Type:
Video
Institution:
Weatherhead East Asian Institute, Columbia University
Abstract:
How does gender-based discrimination play out in the workplace? What are the overt and covert forms of gender discrimination existing in the Chinese and Western societies? What have been done and what more need to be done to address this profound inequality that has held generations of women back in gaining independence and equal rights? Drawing on economic, sociological, and feminist organizational theories, Rong Zhao, Assistant Professor of Social Work at Hunter College, City University of New York, analyzes: 1) how women have been kept in the low-paying secondary professions and the lower level of organizations; 2) how the discrimination in the workplace is related to the state-led patriarchal society that purposefully restricts women in the domestic world; and 3) what kind of social policies need to be developed and implemented to address this pressing issue. In the end, the speaker will also speak about strategies that individual women may adopt to mitigate the negative influences of gender discrimination on their career development. Rong Zhao is an Assistant Professor of Social Work at Hunter College, City University of New York. She earned her doctorate from Columbia University School of Social Work in May 2018, and previously studied at Beijing Normal University in Beijing, China. Dr. Zhao’s research deals with social welfare practice and policy in a global perspective. Her specific research interests include gender inequality in the workplace, human service workforce, gender in relation to nonprofits, volunteering, and service contracting. Her work has appeared in peer-reviewed publications such as the Nonprofit and Voluntary Sector Quarterly, Voluntas: International Journal of Voluntary and Nonprofit Organizations, and Human Service Organizations: Management, Leadership & Governance.
Topic:
Gender Issues, Labor Issues, Women, and Discrimination
Political Geography:
China and Asia

44. Measuring the Spatial Misallocation of Labor: The Returns to India-Gulf Guest Work in a Natural Experiment

Author:
Michael Clemens
Publication Date:
01-2019
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
‘Guest workers’ earn higher wages overseas on temporary low-skill employment visas. This wage gap can be used to measure gaps in the productivity of workers due to where they are, not who they are. This paper estimates the effects of guest work on Indian applicants to a construction job in the United Arab Emirates, where an economic crisis allocated guest work opportunities as-good-as-randomly among several thousand families. Guest work raised the return to poor families' labor by a factor of four, with little evidence of systematic fraud.
Topic:
Migration, Labor Issues, Migrant Workers, and Guest Workers
Political Geography:
India and Asia

45. The Impact of Global Value Chain Integration on Wages: Evidence from Matched Worker-Industry Data in Thailand

Author:
Sasiwimon W. Paweenawat
Publication Date:
08-2019
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Using a two-stage estimation of matched worker-industry data from 2000 to 2011, this study investigates the impact of global value chain (GVC) integration on wages and the skill premium in 32 industries in Thailand, a country with recent heavy involvement in GVCs. This study employs foreign value added in both final and intermediate goods exports as a proxy for the degree of industry integration in GVCs and applies a panel fixed effects estimation on constructed panel data to investigate its relationship with wages. The main finding indicates that a higher level of industry integration with GVCs leads to higher wages and a higher skill premium, confirming the positive effect of GVC involvement on wages and the complementary effect of high demand for skilled workers in GVC-oriented industries in Thailand. Workers in industries with positions close to the end of the value chain (downstream position) will earn a higher wage than those working in the upstream position. These results have significant policy implications. The Thai government should not only attempt to increase industry involvement in GVCs overall, but also aim to lift industries to higher positions in the GVC to gain the most benefits for Thai workers and the country overall.
Topic:
Labor Issues, Inequality, Wage Subsidies, and Global Value Chains
Political Geography:
Asia and Thailand

46. Value Added Exports and the Local Labour Market: Evidence from Vietnamese Manufacturing Firms

Author:
Duc Anh Dang
Publication Date:
08-2019
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The formation of global value chains (GVCs) has reshaped production processes across countries. This paper investigates the relationship between GVCs and firms’ employment by using panel data on Vietnamese small manufacturing firms for 2005–2011. The results suggest that increased foreign value added in exports results in higher wages, increased productivity, and a greater share of production workers in domestic small and medium-sized enterprises. In addition, it brings about a lower share of professionals and makes smaller firms retrain their existing workers. At the same time, domestic value added in the export of intermediate products has negative impacts on employment and increases wages, particularly in medium-sized firms. All of these may come from the increased competition for labour from larger firms.
Topic:
International Cooperation, Labor Issues, Trade, and Global Value Chains
Political Geography:
Asia and Vietnam

47. Global Value Chains and Formal Employment in Viet Nam

Author:
Trinh Q. Long, Le T. Trang, and Matthias Helble
Publication Date:
09-2019
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study investigates the impacts of integration into global value chains (GVCs) on formal and informal employment in Viet Nam. Utilising the Viet Nam Household Living Standard Surveys and the Organisation for Economic Co-operation and Development’s Trade in Value Added database (in 2010, 2012, and 2014), we examine how GVCs’ engagement affects the share of formal employment (through a fixed effects estimator) and the likelihood of being a formal employee (through a probit estimator). Our estimation results show a positive relationship between the level of GVC engagement and the share of formal employment at the provincial level. While the GVC participation index (measured as the sum of backward and forward participation indices) does not have a statistically significant effect on the share of formal employment at the provincial level, each component of GVC participation (i.e. backward and forward participation) has effects at the provincial level in different directions. At the individual level, we find that provincial GVC engagement is also positively correlated with individuals’ likelihood of being formally employed. However, the probability of being a formal employee (individual) is not directly affected by GVC engagement at the provincial level, but is indirectly affected through the local labour market. Such results indicate that individual and household characteristics are robust determinants of being employed as a formal employee.
Topic:
Labor Issues, Employment, and Global Value Chains
Political Geography:
Asia and Vietnam

48. The Impact of Economic Globalisation on Firm Performance and the Labour Market: Evidence from Japan

Author:
Keiko Ito
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper summarises the major findings and arguments in the literature on the impact of globalisation on firm performance and the labour market, focusing on the case of Japan. Internationalised firms show better performance. Although offshoring has shifted labour demand towards skilled workers, thedirect contribution of globalisation to the widening wage gap is quite limited. The empirical evidence for Japan is more or less consistent with that for other developed countries, but some observations on Japan are worth pointing out. First, several empirical studies confirm a learning-by-exporting effect. Second, there is no strong evidence that increases in imports from China have reduced domestic employment. Increases in imports from China have a positive effect on value added growth in downstream industries, implying that imports from China are likely to be complementary to domestic production in Japan.
Topic:
Globalization, Industrial Policy, Labor Issues, Exports, and Imports
Political Geography:
Japan, China, and Asia

49. Economic Consequences of Globalisation: Case Study of Thailand

Author:
Archanun Kohpaiboon
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The paper reviews empirical works examining the effect of globalisation in Thailand, beginning with a discussion of its integration into the economy. Three drivers of economic globalisation are emphasised: international trade, foreign direct investment, and cross-border labour mobility. The findings point to globalisation’s potential to create a favourable economic impact. Opening up to international trade could promote productivity and drive economic growth. Large foreign direct investment inflows enticed by export-oriented industrialisation are likely to generate horizontal technological spillovers within a given industry; vertical spillovers through the linkages were not a robust result. There is no evidence that employing foreign workers retards firm productivity; rather, the opposite is the case. Well-performing firms are in a position to attract foreign workers and maintain production capacity. Global production sharing (GPS) does not necessarily mean the participating countries are trapped at the low end of the quality ladder. The Thai experience supports the case for further globalising its economy. Any possible side effects of globalisation can be mitigated by other policies such as strengthening the social safety net.
Topic:
Globalization, International Trade and Finance, Labor Issues, and Economic Growth
Political Geography:
Asia and Thailand

50. Economic Confidence Building Measures – Civil Servant Salaries

Author:
Mansour Ali Al Bashiri
Publication Date:
03-2019
Content Type:
Policy Brief
Institution:
Sana'a Center For Strategic Studies
Abstract:
In December 2018, 23 of Yemen’s leading socioeconomic experts convened in Amman during the Fourth Development Champions Forum to discuss economic confidence-building measures in the peace process in Yemen. The discussions at the Forum, which is part of the Rethinking Yemen’s Economy initiative, touched on a number of economic mechanisms that could be implemented to build confidence. These included supporting the Central Bank as an independent institution that serves all of Yemen; ensuring the deposit of public revenues in all governorates at the Central Bank headquarters in Aden; and opening ports and ensuring the free movement of goods, humanitarian aid and people between governorates. The Forum focused on the payment of salaries and pensions to all civil servants due to the critical importance of the issue; this policy brief presents the outcomes of this discussion. As a key step to simultaneously address the humanitarian crisis in Yemen and build confidence between the parties engaged in the peace process, the Development Champions recommend that the Yemeni government resumes salary payments to all civil servants working in the administrative apparatus of the state registered in the Ministry of Civil Service database of 2014 across Yemen, prioritizing payments to education and health workers. The Yemeni government should also continue to provide liquidity to guarantee the payment of pensions to all public sector retirees. Meanwhile, Ansar Allah should allow all state revenues in areas under their control to be deposited into the accounts specified by the Central Bank of Yemen temporarily headquartered in Aden, and all parties should work toward the restoration of the Central Bank as a national institution that serves all of Yemen. The Development Champions call on regional and international donors to cover any funding gap to support the payment of salaries and pensions.
Topic:
Civil Society, Economics, Labor Issues, Income Inequality, and Economic Development
Political Geography:
Asia, Yemen, and West Asia