Have low wage economies caused unemployment in the UK by "stealing" jobs, particularly in low-skill industries?
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Competition from low-wage economies has been a source of job loss in all rich countries. Workers in low-skill jobs in the rich countries are consistently undercut by workers in foreign countries who will work for less and who have sufficient skills to do the job.
Many rich countries think that they should try to enact protectionist policies to protect these jobs. Economists, however, argue that the right thing to do is to put resources in to reducing the number of low-skill workers in the rich economies. Rich countries should specialize in sectors of the economy that require more education and higher skill levels.
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