is there an aceptable future for workers under
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Is there an aceptablefuture for workers under
capitalism?The mexican case
Alejandro Valle Baeza
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Overview
Mexican economy panoramic view
Landmarks from the 1950s to the 1980s
The 90s
Current situation
Situation of Mexican workers
Toward an explanation of workerssituation
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GDP 14th, GDP per capita 51th
Upper middle income country WB
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The country is being left behind by
other nations similar to it
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Evolution of labor productivity
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Backwardness found in many
social indicators.
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Inequality of income or expediture
0
5
10
15
20
25
Rich est 20% to poo rest 20%
Finland
United States
Spain
Denmark
Mexico
Bulgaria
Brazil
Turkey
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Workerssituaton
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Top 10 emigration countries
Mexico,
Russia,
India,
China,
Ukraine,
Bangladesh,
Turkey, United Kingdom, Germany,Kazakhstan.
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Top 10 remittance recipients in
2007
India ($27.0 bn),
China ($25.7 bn),
Mexico ($25.0 bn),
Philippines $17.0 bn),
France ($12.5 bn),
Spain ($8.9 bn),
Belgium ($7.2 bn), United Kingdom ($7.0bn), Germany ($7.0 bn), Romania ($6.8bn)
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Precarious employment huge
problem
Mexican unemployment was 3,9% in2005 fairly lower than the 7,7%Latin American average.
However: 9,6% of Mexican workers are not
looking for a job.
60% do not have fringe benefits (healthcare, etc)
A huge share of workers havenutritional problems
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Hence, the country with less unemployment inLatin America Shows higher labor problems than advanced countries.
Mexico is just an example of common labor
problems in middle or low income countries: Increasingly over the 1990s, a number of jobs
came also to be characterized by theirprecariousness. Changes in labour legislationmade it possible for employers to hire workers
within the formal economy but under conditionsthat mirrored those faced by workers in theinformal economy.
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Toward an explanation
Employment problems results fromcapitalist increasing of productivity:
Rising productivity Y/L implies
increasing of K/Y ( a proxy for organiccomposition of capital).
Backward countries have higher K/Y inadvanced industriesbecause an
important share of K is imported payingwith exporting merchandises producedwith low productivity
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An example
1960 GM 14371dol/ worker.
2005 GM 1453468dol/ worker.
Despite inflation itrequires much morecapital now perworker
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
GM
1960
2005
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USA K/Y manufacture
1947-2000
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1947
1949
1951
1953
1955
1957
1959
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
C it l St k W k (1985
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Capital Stock per Worker (1985
international prices) 1992
Norway47118.0
France37460.0
Mexico13697.0 Colombia12742.0
Poland11811.0
Chile11306.0
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On the average in price termsNorway had 3.4more capital perworker at 1992 than Mexico.
However in labor time terms thisratio is much lower: 1.74times because capital is more
expensive in Mexico than in Norway.
Such average shows that in specificindustries K/L in value terms could belarger in Mexico than in Norway
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Short conclusion
Labor problems: unemployment,underemployment, precarious jobsare caused by increasing organic
composition of capital (a proxy isK/Y).
Backward countries have additionallabor problems because means ofproduction cost more in value termsthan capital in advanced countries.
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