Download or read book Jobless Growth in the Manufacturing Industry Decoupling Sectoral Output and Employment in the United States and South Korea written by Eunsun Gil and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Jobless growth in the South Korean manufacturing industry has been observed since 2015. Even as total value added in the manufacturing sector is continuously growing, manufacturing employment levels are decreasing; this pattern first emerged in the 1990s, lasting for a decade. The decoupling of output and employment in the manufacturing industry is atypical compared to the commonly stylized facts showing that both employment and output grow together in the long run and decline together during recessions at the aggregate level of an economy. This article analyzes which subsectors account for the jobless growth pattern in the South Korean manufacturing industry. Importantly, a recent cyclical downturn in automotive and shipbuilding manufacturing cannot explain the negative correlation between sectoral output and employment. Instead, the jobless growth pattern is observed within the computers and electronics manufacturing subsector, and it offsets the other sectors' positive correlation between output and employment. I classify the jobless growth patterns of the manufacturing industry by comparing the United States and South Korea to address political suggestions. If the jobless growth in the South Korea followed the trace of the United States, then manufacturing employment would not easily increase despite an export revival or an output recovery in future.

Download or read book Employment Deindustrialization written by Eunsun Gil and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Deindustrialization in advanced countries (especially in the United States) has been discussed since the 1980s, but what we actually have observed is a distinct pattern of employment deindustrialization rather than a severe decline in the output share of manufacturing. Meanwhile, the service industry's share of GDP has been growing in most advanced countries, and some policymakers argue that future growth strategies for advanced economies should focus on the service sector. In this article, I reassess the role of the manufacturing industry in the overall economy's production growth and employment through a cross-country comparison. Then, I focus on the manufacturing industry in South Korea to illustrate how the sector has produced more with fewer workers, leading to the recent emergence of a jobless growth pattern. I first discuss if output growth in the manufacturing industry is no longer significant and whether or not the government should alter its economic growth strategy toward innovation in the service sector. In short, I find that production growth in the manufacturing industry is still important for economic growth in nearly every country. Especially in South Korea, the manufacturing share of GDP does not exhibit a long run declining trend as it does in other advanced countries. Secondly, I show that employment deindustrialization does exist and its magnitude is substantial despite the persistent importance of manufacturing production in economic growth. The share of manufacturing workers to non-farm employment has decreased in most countries including South Korea, a phenomenon which is more frequently described as job polarization. Even though the level (or the share in a weaker definition) of manufacturing employment declines, the relative labor income of production workers is still ranked high, right after the high-skill occupations such as managers, professionals, and technicians in many countries. Therefore, employment deindustrialization means that it is harder for moderateto low-skill (or low-education) workers to get well-paying jobs. Finally, I use firm-level data in South Korea to show increased production despite the fact that fewer workers in the manufacturing industry are associated with higher capital inputs. Exports have a weak but positive impact on mitigating jobless growth, so that the manufacturing industry grows without losing too many jobs when exports augment the scale of production to a sufficient degree. If we adopt new capital-intensive production technology to aim for growth in the manufacturing industry with adequate job creation, then the industry should exhibit a large scale effect that overrides the capital-labor substitution effect.

Download or read book Manufacturing Output Productivity and Employment Implications written by Lawrence V. Kenton and published by Nova Publishers. This book was released on 2005 with total page 110 pages. Available in PDF, EPUB and Kindle. Book excerpt: "This book examines in more detail three specific manufacturing sectors: information technology industries, which have been high-growth areas of the economy and internationally competitive; the automotive sector, which has been affected by high levels of import penetration and is divided between the "Big Three" U.S. manufacturers and "transplants"; and, textiles and apparel, which are facing a high level of import competition and have experienced large numbers of job loses." -- Preface.

Download or read book Labor Market Slack and the Output Gap The Case of Korea written by Mr.Niels-Jakob H Hansen and published by International Monetary Fund. This book was released on 2019-08-02 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: Output gap estimates are widely used to inform macroeconomic policy decisions, including in Korea. The main determinant of these estimates is the measure of labor market slack. The traditional measure of unemployment in Korea yields an incomplete estimate of labor market slack, given that many workers prefer involuntary part-time jobs or leaving the labor force rather than registering as unemployed. This paper discusses a way in which the measure of unemployment can be broadened to yield a more accurate measure of labor market slack. This broader measure is then used to estimate the output gap using a multivariate filter, yielding a more meaningful measure of the output gap.

Download or read book U S Manufacturing written by Thomas J. Duesterberg and published by Bloomsbury Publishing USA. This book was released on 2003-09-30 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt: Evolving rapidly from a mass-produced product orientation to a flexible, solutions-oriented model, the changing manufacturing sector is poised to lead a global economic recovery. Truly an insider's guide to the future of this critical sector, this book provides policy recommendations based on a wealth of information. Despite the appearance of difficult economic times for U.S. manufacturing, that sector of the American economy is actually the most innovative and competitive in the world. Far from being confined to the tired stereotype of Industrial Age commodities, such as steel and mass-produced consumer products, U.S. manufacturing has long been an engine for growth. In the 1990s, this central role was strengthened as new technology development and application spurred higher levels of growth throughout the economy. In its present configuration, manufacturing includes such high-tech industries as fiberoptics and microchips. Globalization has accelerated the growth of the manufacturing sector by increasing competitive pressures to cut costs and develop new products faster, spreading out the fixed costs of R&D and investment. Truly an insider's guide to the future of this critical sector, this book provides policy recommendations based on a wealth of information. Evolving rapidly from a mass-produced product orientation to a flexible, solutions-oriented model, the changing manufacturing sector is poised to lead a global economic recovery. But it can do so only if the right policies are in place in the United States. To that end, the editors of this volume recommend fiscal and tort reform, higher educational achievement, and continued deregulation. At the international level, further trade liberalization and steps to reduce the trade deficit are recommended to ensure the staying power of U.S. competitiveness, particularly for technology-intensive industries.

Download or read book Manufacturing Jobs and Inequality Why is the U S Experience Different written by Natalija Novta and published by International Monetary Fund. This book was released on 2019-09-13 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the extent to which declining manufacturing employment may have contributed to increasing inequality in advanced economies. This contribution is typically small, except in the United States. We explore two possible explanations: the high initial manufacturing wage premium and the high level of income inequality. The manufacturing wage premium declined between the 1980s and the 2000s in the United States, but it does not explain the contemporaneous rise in inequality. Instead, high income inequality played a large role. This is because manufacturing job loss typically implies a move to the service sector, for which the worker is not skilled at first and accepts a low-skill wage. On average, the associated wage cut increases with the overall level of income inequality in the country, conditional on moving down in the wage distribution. Based on a stylized scenario, we calculate that the movement of workers to low-skill service sector jobs can account for about a quarter of the increase in inequality between the 1980s and the 2000s in the United States. Had the U.S. income distribution been more equal, only about one tenth of the actual increase in inequality could have been attributed to the loss of manufacturing jobs, according to our simulations.

Download or read book Global Trends 2040 written by National Intelligence Council and published by Cosimo Reports. This book was released on 2021-03 with total page 158 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The ongoing COVID-19 pandemic marks the most significant, singular global disruption since World War II, with health, economic, political, and security implications that will ripple for years to come." -Global Trends 2040 (2021) Global Trends 2040-A More Contested World (2021), released by the US National Intelligence Council, is the latest report in its series of reports starting in 1997 about megatrends and the world's future. This report, strongly influenced by the COVID-19 pandemic, paints a bleak picture of the future and describes a contested, fragmented and turbulent world. It specifically discusses the four main trends that will shape tomorrow's world: - Demographics-by 2040, 1.4 billion people will be added mostly in Africa and South Asia. - Economics-increased government debt and concentrated economic power will escalate problems for the poor and middleclass. - Climate-a hotter world will increase water, food, and health insecurity. - Technology-the emergence of new technologies could both solve and cause problems for human life. Students of trends, policymakers, entrepreneurs, academics, journalists and anyone eager for a glimpse into the next decades, will find this report, with colored graphs, essential reading.

Download or read book Growth Trade and Deindustrialization written by Mr.Ramana Ramaswamy and published by International Monetary Fund. This book was released on 1998-04-01 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper shows that deindustrialization is explained primarily by trends internal to the advanced economies. These include the combined effects on manufacturing employment of a relatively faster growth of productivity in manufacturing, the associated relative price changes, and shifts in the structure of demand between manufactures and services. North-South trade explains less than one fifth of deindustrialization in the advanced economies. Moreover, the contribution of North-South trade to deindustrialization has been mainly through its effects in stimulating labor productivity in Northern manufacturing. It has had little enduring effect on total manufacturing output in the advanced economies.

Download or read book Economic Growth Productivity and Trade written by Euysung Kim and published by . This book was released on 1996 with total page 172 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Industrial Policy Productivity and Technical Change in South Korean Manufacturing written by Ram Mahidhara and published by . This book was released on 1990 with total page 144 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Effect of Restructuring on Labor Reallocation and Productivity Growth written by Hyelin Choi and published by . This book was released on 2017 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: Productivity is considered one of the most important factors for economic growth. Total productivity grows through technological progress or reallocation of resources. This paper analyses their contribution to economic growth for total economy and by sectors. The main finding is that economy-wide increases but this is mainly due to internal technological improvements. On the one hand, inter-sector reallocation of labor negatively contributes to economic growth as employment moves to service sectors with low productivity. Further, when looking at the sectoral-level productivity growth, both internal and external restructuring make positive contributions to aggregate economic growth. However, internal technological progress and reallocation of employment appear to similarly contribute to the sectoral-level economic growth in the manufacturing sector, whereas internal restructuring makes a larger contribution to economic growth in the service sector. This suggests that there is more room for reallocation of resources to contribute to the productivity growth in service sectors. Therefore, the productivity growth of the service sector would foster economy-wide productivity and it can be achieved by the mitigation of misallocation of resources in service sectors.

Download or read book The Globotics Upheaval written by Richard Baldwin and published by Oxford University Press. This book was released on 2019-01-09 with total page 305 pages. Available in PDF, EPUB and Kindle. Book excerpt: At the root of inequality, unemployment, and populism are radical changes in the world economy. Digital technology is allowing talented foreigners to telecommute into our workplaces and compete for service and professional jobs. Instant machine translation is melting language barriers, so the ranks of these "tele-migrants" will soon include almost every educated person in the world. Computing power is dissolving humans' monopoly on thinking, enabling AI-trained computers to compete for many of the same white-collar jobs. The combination of globalization and robotics is creating the globotics upheaval, and it threatens the very foundations of the liberal welfare-state. Richard Baldwin, one of the world's leading globalization experts, argues that the inhuman speed of this transformation threatens to overwhelm our capacity to adapt. From computers in the office to automatic ordering systems in restaurants, we are familiar with the how digital technologies offer convenience while also eliminating jobs. Globotics will disrupt the lives of millions of white-collar workers much faster than automation, industrialization, and globalization disrupted the lives of factory workers in previous centuries. The result will be a backlash. Professional, white-collar, and service workers will agitate for a slowing of the unprecedented pace of disruption, as factory workers have done in years past. Baldwin argues that the globotics upheaval will be countered in the short run by "shelter-ism" - government policies that shelter some service jobs from tele-migrants and thinking computers. In the long run, people will work in more human jobs-activities that require real people to use the uniquely human ability of independent thought-and this will strengthen bonds in local communities. Offering effective strategies such as focusing on the social value of work, The Globotics Upheaval will help people prepare for the oncoming wave of an advanced robotic workforce.

Download or read book Understanding the Decline of U S Manufacturing Employment written by Susan N. Houseman and published by . This book was released on 2018 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: U.S. manufacturing experienced a precipitous and historically unprecedented decline in employment in the 2000s. Many economists and other analysts—pointing to decades of statistics showing that manufacturing real (inflation-adjusted) output growth has largely kept pace with private sector real output growth, that productivity growth has been much higher, and that the sector’s share of aggregate employment has been declining—argue that manufacturing’s job losses are largely the result of productivity growth (assumed to reflect automation) and are part of a long-term trend. Since the 1980s, however, the apparently robust growth in manufacturing real output and productivity have been driven by a relatively small industry—computer and electronic products, whose extraordinary performance reflects the way statistical agencies account for rapid product improvements in the industry. Without the computer industry, there is no prima facie evidence that productivity caused manufacturing’s relative and absolute employment decline. This paper discusses interpreting labor productivity statistics, which capture many factors besides automation, and cautions against using descriptive evidence to draw causal inferences. It also reviews the research literature to date, which finds that trade significantly contributed to the collapse of manufacturing employment in the 2000s, but finds little evidence of a causal link to automation.

Download or read book Manufacturing Employment International Trade and China written by Abdelaaziz Ait Ali and published by . This book was released on 2019 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: The decline in manufacturing employment is often seen as a major reason for rising inequality, social tensions, and the slump of entire communities. With the rise of national populists and protectionists in recent years, the issue has become even more prominent. In the sample of the countries we examined, including the United States, the increase in labor productivity in manufactures, due to automation and improved methods, was a far more important cause of employment decline than shifts in the manufacturing trade balance, contrary to a commonly held view. We find only weak evidence that the size of the manufacturing sector - measured in different ways -- is associated with rapid economic growth. Several countries have grown at a reasonable pace without seeing a large increase in the relative size of their manufacturing sector. While the growth of labor productivity in the manufacturing sector is higher than that of the economy as a whole on average, several economies saw economy-wide labor productivity grow faster than labor productivity in manufacturing, including several countries in East Asia.

Download or read book Emergence of Manufacturing Related Services and Collaboration Between Korea and China Manufacturing Innovation Perspectives written by Sang Hyun Lee and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The emergence of manufacturing related services (MRS) coincides with the revaluation of manufacturing. We observed that manufacturing-focused countries overcame the financial crisis which broke out in 2007 with less difficulty than their service-focused counterparts. Manufacturing played a crucial role in navigating the economic problems such as unemployment, polarization and stagnant growth and so on. Moreover, this pattern of positive impacts from the manufacturing sector was observed from European countries trying to boost their economy. Germany, a manufacturing-driven economy, showed continuous economic growth, while service-driven economies in Greece and Austria experienced recession. Therefore, the importance of manufacturing was revaluated and commonly shared. However, the manufacturing sector we are revaluating now is not what it once was. Interestingly, manufacturers do not only manufacture any more. Instead, their activities increasingly involve services. According to a 2012 report from McKinsey, more than 34 percent of U.S. manufacturing employees are involved in service areas, or service-like activities. These service-like-activities include research and development, engineering, design, marketing and customer services which are sources of high value added and high quality jobs. In short, these changes allowed manufacturing to overcome financial crises and energize economies with trickle-down job creation, upgrades in the industrial value chain and new demand for professional services.Those changes are attributed to a paradigm shift in the manufacturing industry which is observed in various areas. First, new types of products have appeared in the market. These new products are described as smart, connected products (SCP) by Michael Porter (2014). SCP are differentiated from existing or previous products in that they consist of different components and work in different ways. As components, they are smart and connected to networks, and must be embedded in operating systems or user interfaces for optimal utilization. In addition, SCP are connected through either wired or wireless connections for auto-updating. SCP monitor, control and optimize themselves autonomously.The emergence of these types of products requires manufacturers to cope with a new environment with appropriate solutions. Manufacturers are expected to form new technology infrastructure, including product related hardware and software, cloud servers for remote control of the product and security protocols. Moreover, these new products are capital expenses, expected to result in relatively higher fixed costs and lower variable costs for manufacturers. Higher fixed costs result from the expenses induced in developing software, designing interfaces and acquiring other technological capital. In the end, manufacturers are expected to become providers of whole product systems and not simply makers of individual products. Therefore, core competencies of manufacturers will be determined by competitiveness at the system level.The second type of paradigm shift is found in the value creation. Previously, production activity itself was the main source of value in manufacturing. However, the main source of value now comes from services which are applied before and after production. To provide services as a source of value, manufacturing firms are now shifting production to smart products (in contrast to previously “dumb” products) through which services can be integrated.In summation, products, competitiveness and value creation are rapidly evolving in the manufacturing sector. However, manufacturing firms are not able to deal with this situation by sticking only to production process. Convergence with various services is necessary for the firms effectively respond to a changing environment. This necessitates that manufacturers utilize MRS.

Download or read book World Development Report 2019 written by World Bank and published by World Bank Publications. This book was released on 2018-10-31 with total page 148 pages. Available in PDF, EPUB and Kindle. Book excerpt: Work is constantly reshaped by technological progress. New ways of production are adopted, markets expand, and societies evolve. But some changes provoke more attention than others, in part due to the vast uncertainty involved in making predictions about the future. The 2019 World Development Report will study how the nature of work is changing as a result of advances in technology today. Technological progress disrupts existing systems. A new social contract is needed to smooth the transition and guard against rising inequality. Significant investments in human capital throughout a person’s lifecycle are vital to this effort. If workers are to stay competitive against machines they need to train or retool existing skills. A social protection system that includes a minimum basic level of protection for workers and citizens can complement new forms of employment. Improved private sector policies to encourage startup activity and competition can help countries compete in the digital age. Governments also need to ensure that firms pay their fair share of taxes, in part to fund this new social contract. The 2019 World Development Report presents an analysis of these issues based upon the available evidence.

Download or read book Prosperity without Growth written by Tim Jackson and published by Taylor & Francis. This book was released on 2016-12-08 with total page 351 pages. Available in PDF, EPUB and Kindle. Book excerpt: What can prosperity possibly mean in a world of environmental and social limits? The publication of Prosperity without Growth was a landmark in the sustainability debate. Tim Jackson’s piercing challenge to conventional economics openly questioned the most highly prized goal of politicians and economists alike: the continued pursuit of exponential economic growth. Its findings provoked controversy, inspired debate and led to a new wave of research building on its arguments and conclusions. This substantially revised and re-written edition updates those arguments and considerably expands upon them. Jackson demonstrates that building a ‘post-growth’ economy is a precise, definable and meaningful task. Starting from clear first principles, he sets out the dimensions of that task: the nature of enterprise; the quality of our working lives; the structure of investment; and the role of the money supply. He shows how the economy of tomorrow may be transformed in ways that protect employment, facilitate social investment, reduce inequality and deliver both ecological and financial stability. Seven years after it was first published, Prosperity without Growth is no longer a radical narrative whispered by a marginal fringe, but an essential vision of social progress in a post-crisis world. Fulfilling that vision is simply the most urgent task of our times.