January 31, 2013
Cheap Chinese Labor Will Last Only 10 More Years
Free Exchange, Free Exchange
CHEAP Chinese labour makes the world go around. It supplies developed markets with cheap goods which, to some extent, make up for stagnating wages. It also keeps the Chinese economic model humming by providing the foundation for growth. But how long can it last? IMF economists Mitali Das and Papa N’Diaye, in a new working paper, reckon only about another decade.