By World Bank Group
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Extra info for Involving workers in East Asia's growth
This is the main reason why, despite the frequently cited East Asian economic miracle, almost three-quarters of the region's working age population continues to live in low-income economies (Table 1). From a global perspective this also explains why almost half the working age population of low-income economies resides in East Asia. Income Profile The income profile of East Asian economies is captured by the region's aggregate structure of employment (Figure 1). Agriculture engages 57 percent of the labor force, the overwhelming majority on their own farms.
East Asia's record of labor productivity growth over the past three decades is unprecedented. For the region as a whole estimates of productivity growth exceed those in all other region's in every decade, with the gap widening over time (Figure 3). During the early 1990s productivity growth in East Asia accelerated and reached unprecedented levels, in marked contrast to the experience in every other region, where productivity changes were negligible and even negative. Because these estimates of productivity growth are weighted averages, dominated by the most populous countries in each region, the comparative performance of East Asia is driven by the achievements of the Chinese economy.
Agricultural liberalization will lead to significant falls in prices (in real terms) in most of the newly industrialized economies, with much smaller declines in grain prices in most ASEAN countries and China. Wages will rise but employment will shift with the liberalization of manufacturing and agricultural tradeBox Table 1. 9decrease increase increaseThese are the results of modeling work using a computable general equilibrium analysis that assumes full employment and capital and labor moving into the most profitable activities.
Involving workers in East Asia's growth by World Bank Group