Meditations and Learnings

Meditations and Learnings

Wages and Working Conditions in Developing Countries

Wages in developing countries are lower, and the working conditions are worse because the productivity is not equivalent to that within developed countries and is therefore not worth as much. Artificially forcing companies to pay more will reduce the number of workers hired. Amongst the other options available, these jobs are a gift. Reducing the number of workers who have access to this opportunity not only deprives them of a better life in the short term - it also destroys the chance to build skills and become more valuable in the future. Conditions naturally improve as a population becomes more highly skilled - it is of benefit to both the employers and the employees to have a more productive workforce.

Better working conditions which emerge naturally from the market competition are superior to those achieved by government imposition. They increase the employee’s options and genuinely increase the value of a worker. Employees with more human capital can demand more while the companies will be eager to hire them.