Is Chinese Labor Still Cheap?

The Economist hosts a forum asking “Is the era of cheap Chinese labor over?” Participants include Tyler Cowen, Lant Pritchett and Ricardo Haussmann. Cowen’s take: “The real question is what you get for your money, when you hire a worker. If Chinese wages are rising, it is because Chinese workers have shown that they are more productive. All the capital investment in China is yielding dividends in terms of greater output per worker and that’s good for virtually everyone.” [%comments]

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  1. Bob Taylor says:

    When considering labor in developing countries, it is not simply a wage that matters. It is all of the other intangibles that are not calculated as easily. While rage rates in certain countries are much lower that China, China offers a stable political environment, consistency of rules and regulations, reliable transportation and civil law and order.

    When other locations accomplish these along with low wage rates, then manufacturers will consider moving.

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