Labor Mobility

Labor is mobile factor, and workers tend to move to the sector having higher wages. It has good and also bad effects into economy. These two articles from World Bank are about Eurasian Economic Union, China and their new programs in labor control.

First article is about the pension mobility in Eurasian Economic Union. Eurasian Economic Union is an economic union between Belarus, Kazakhstan, and Russia. Under this new program, the workers have free movement in union, and they also receive the pensions from the countries where they are working and applying for the pension program. In my view, this program will simplify the pension mobility, give the workers better services and encourage the labor moving in union.

Second article is a brilliant idea in China. They have convenient classes in rural areas. They drive big trunks to the villages and turn them to be convenient classes to teach villagers new skills like driving or cooking. In the article, we can see some real examples. Ma Haihua’s income has increased 20 times after she attended the class and opened her own restaurant. Ma Shijie doubled his income after he learned how to operate an excavator. This program is extremely useful for developing countries. One of the main problems of developing countries is population. In rural areas, they have low education and have a lot of children. Then when the people can’t find jobs in villages, they go into cities and lead to overpopulation. In developing countries, they have big population, but the labor is less productive. This free training program will solve the problem.

References:
http://www.worldbank.org/en/news/press-release/2014/07/21/labor-migrants-pension-mobility-as-a-symbol-of-efficient-functioning-of-the-emerging-eurasian-economic-union

http://www.worldbank.org/en/news/feature/2014/09/01/new-skills-and-job-opportunities-for-china-rural-migrants