Labour and globalization: locating the Northeast Asian newly industrializing countries

Abstract

ABSTRACT Globalization is closely associated with the turn towards neo-liberal economic strategies. One defining feature of neo-liberalism is labour market liberalization. The experiences of labour market reform in the Northeast Asian Newly Industrializing Countries of South Korea (hereafter Korea) and Taiwan exhibit differences from both the neo-liberal and alternative capitalist patterns commonly identified in the political economy literature. Using a comparative framework based on the criteria of labour market reform, political configurations, corporatist institutions, and the feedback effects of labour market policies, this article will reveal and explain the distinctiveness of the Northeast Asian pattern. Variations between Korea and Taiwan will also be explained using this framework. The findings here will contribute to the debate about how local institutions and politics interact with globalizing forces to produce divergent outcomes.