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In Europe open unemployment rates are in double digits and proving unexpectedly persistent. In the United States wage inequality has been increasing since the late 1970s after declining for decades. Countries in Eastern Europe undergoing the transition to a market economy suddenly face widespread open unemploymenta problem unknown under central planning. Plummeting real wages have eroded the standard of living of workers in Africa, Latin America, and the Middle East during struggles with structural adjustment.

As the pattern of comparative advantage changes, better-off economies have to move up the ladder. Some hit labor shortagesas Malaysia did in the mid-1990s. There are often fears of rising inequality, either because the demand for skilled workers races ahead with shifts in demand or because unskilled workers get left behind. A broadly based expansion of skills is the key to avoiding rising inequality. With the desirable structural transformation induced by trade-based growth, there is a steadily rising demand for skills and a commensurate demand shift away from unskilled labor.

Editing, layout, and production by American Writing Corporation Library of Congress Cataloging-in-Publication Data Involving workers in East Asia's growth.  cm. (Regional perspectives on world development report 1995) "This report was prepared in conjunction with World Development Report 1995: Workers in an Integrating World".  38).  Series. 5'62'095dc20 96-31886 CIP ISSN 1020-3648 Page iii Contents Foreword v 1 Employment Crises and Employment Miracles 1 2 Labor Outcomes 2 Income Profile 2 Changes in Labor Productivity 3 Gains in Rural Productivity 5 Structural Transformation of Employment 5 Higher Wages in the Urban Economy 6 3 Will International Engagement Bring Rising Gains for Workers?

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