The Post-Crisis Global Division of Labor

Recent changes in how different stages of the production chain are dispersed across the globe have led to the notion of a new global division of labour.

It will have far-reaching consequences for the skills required from the workforce, their jobs, and the economy as whole; both in developed and developing countries.

During the 80s and 90s, the global division of labour implied that unskilled jobs were done in low-wage countries, while skilled jobs were done in the developed economies.

At the same time, the situation of unskilled workers in many developed countries deteriorated drastically and inequalities started to rise.

Recent technological developments such as the internet have made it possible to efficiently relocate more and more tasks of the production chain abroad, including high-skilled jobs. Entirely new and unpredictable patterns of inequalities could thus emerge, possibly along with dwindling support for economic globalisation. Yet, for both the developed and the developing world, the new global division of labour may entail a lot of potential to be explored. So what should be done to prevent potential unwanted consequences?

The unpredictable nature of the new global division of labour may entail that job contents change completely and that people are likely to work in more than one occupation throughout their working life. It has been argued that workers need strong competences in social skills, problem-solving skills, and versatility to cope with such challenges. Are these the skills that are needed to create and preserve employment in good jobs and to sustain current welfare levels? Will education systems and curricula have to change in order to produce a workforce with such skills? How can the welfare state support workers in such a changing environment? Which skills do workers in developing countries need in order to benefit most from the new global division of labour? Is the new global division of labour finally the chance to close the huge education gap between developed and developing nations