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Unequal exchange of labour in the world economy
Stockholm University, Faculty of Science, Stockholm Resilience Centre. The Royal Swedish Academy of Sciences, Sweden.
Number of Authors: 32024 (English)In: Nature Communications, E-ISSN 2041-1723, Vol. 15, article id 6298Article in journal (Refereed) Published
Abstract [en]

Researchers have argued that wealthy nations rely on a large net appropriation of labour and resources from the rest of the world through unequal exchange in international trade and global commodity chains. Here we assess this empirically by measuring flows of embodied labour in the world economy from 1995–2021, accounting for skill levels, sectors and wages. We find that, in 2021, the economies of the global North net-appropriated 826 billion hours of embodied labour from the global South, across all skill levels and sectors. The wage value of this net-appropriated labour was equivalent to €16.9 trillion in Northern prices, accounting for skill level. This appropriation roughly doubles the labour that is available for Northern consumption but drains the South of productive capacity that could be used instead for local human needs and development. Unequal exchange is understood to be driven in part by systematic wage inequalities. We find Southern wages are 87–95% lower than Northern wages for work of equal skill. While Southern workers contribute 90% of the labour that powers the world economy, they receive only 21% of global income.

Place, publisher, year, edition, pages
2024. Vol. 15, article id 6298
National Category
Economic Geography
Identifiers
URN: urn:nbn:se:su:diva-237013DOI: 10.1038/s41467-024-49687-yISI: 001280592000003PubMedID: 39075072Scopus ID: 2-s2.0-85199966819OAI: oai:DiVA.org:su-237013DiVA, id: diva2:1921363
Available from: 2024-12-16 Created: 2024-12-16 Last updated: 2024-12-16Bibliographically approved

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