2008's Crisis and Its Effects on World Labor Markets

By

ABSTRACT…………………………………..………………………………………………… i DEDICATION………………………………..…………………………………….,,………… ii ACKNOWLEDGEMENTS……………………………..…………………..………………… iii

LIST OF FIGURES……………………………………..………………,,,,,………………… vii

LIST OF TABLES………………………………………………………,,,,,………………… viii

Introduction2

World Labor Markets3

Labor markets in the Developed and Advanced Economies of the World3

Effects on the Wages of Labor4

Trends of Global Labor Market4

Labor Markets Effecting the Global Economy4

Globalization and Financial Liberalization and Its Effects on World Labor Market5

Effects of Globalization and Liberalization on World Labor Markets5

Effect on real wage levels of the work force6

Crisis 20087

Overview Financial Crisis 20087

Trust of the Investors7

Effects of Financial Crisis7

Results8

Effects of the financial crisis in on the global labor markets in the year 20139

Discussion10

Summary10

REFERENCES11

OUTLINE FOR THE THESIS

Introduction

The financial crisis which occurred in the year 2007 resulted in a significantly increasing the economies. Although, most of the countries having emerging markets witnessed that the unemployment of youth has increased on a temporary basis in a few regions, for instance, in Middle East, Latin America and North Africa.

Figure 1: The evolution of unemployment across the regions (World Bank, 2010)

The financial crisis has made a significant contribution in increasing the levels of unemployment by reducing the investments and outputs that are associated to uncertainty, greater premia of risk, and stringent standards of lending. The increase in the unemployment can lead to a permanent increase in the unemployment of the country and also the structural unemployment. The more vulnerable the groups, for instance women and youth having limited occupational experience are also exposed to risk that their rate of participation has been declining in a typical manner (Wray, 2009).

This research study focuses on assessing the effects that financial crisis have on the labor markets of the world. In order to successfully carry out this research study it is important to study the characteristics, structures, employment ratios, issues related to the world labor markets. This research has a major focus on the evaluation of the financial crisis and the way it has affected the world labor markets over the period of time (Reinhart and Kenneth, 2009).

The aim of this research is to explore the effects of the crisis in the year 2008 on the world labor markets and to study if the crisis still has an effect on the labor markets in the year 2013.

This research study will answer questions: What are the effects that financial crisis during the year 2007-2008 has on the world's labor markets? What are the effects that the financial crisis of 2008 has on the global labor markets in the year 2013? Is there still a significant impact?

World Labor Markets

During the past decades, the economies have industrialized and started to compete in the global markets. A million people moved from farms to the factories and became an important part of the labor markets. This accelerated the productivity and increased the GDP per capita in the rural national of the world. It also helped in reducing unemployment and poverty.

Labor markets in the Developed and Advanced Economies of the World

This part of the dissertation studies the characteristics of the world labor ...