Monday, April 10, 2006

Shifts in Working Conditions

Two news incidents caught my eye that had a similar vein of job market conditions running through them. One, read about young American workers conducting part of their work-life in Bangalore in Americans seek opportunity in booming Bangalore. Two, labor shortage in China enables an increase in working conditions and benefits as portrayed in Labor Shortage in China May Lead to Trade Shift.

The buzz about the first one is interesting, would it make sense for the average American as well to entrepreneur from Bangalore “remote” location to offset the initial set-up costs? The second means that rural India could well benefit from the cost of production increase in China, in the long run. Policy lesson. Produce roads, especially lots of spoke-and-wheel connectivity. That will precipitate a demand for electricity and enable a decrease in transaction costs for micro-entrepreneurship.

Hat Tip: Development Bank Research Bulletin and Priyatam.

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