Question

15. Is it true that' labour' is the same everywhere? Answer with reference to the poem "No Men
are Foreign"​

Answer 1

Answer:

Rising developing world wages can coexist with falling labour share if the rise is less than the increase in productivity

One of the long-accepted stylised facts in economics is the constancy of labour’s share in national income. But that is not valid anymore. Labour’s share (wages and other benefits to workers) in GDP has been falling since the early 1990s in most advanced countries. Further, this has been the case in many emerging economies (though not all) as well at a time when these countries were growing at a fast rate.