Wages, employment and workers' rights in Latin America, 1970-98

Orthodox neoclassical economic theory predicts that trade liberalization an d labour market flexibility will increase employment and foster economic gr owth, leading also to higher wages. But Latin America's experience over the past three decades shows that this may not happen in practice. In most cou ntries of the region, the gains from economic growth were not passed on to workers, and overall labour market conditions deteriorated. Weeks concludes that only greater protection for trade union rights can redress the imbala nce between the bargaining power of labour and of capital and thereby secur e a more equitable distribution of the gains from growth.