Implications of Competition with Emerging Countries for the European Labor Market with a Special Focus on China and Latin America

Many emerging countries have quickly caught up to the world technology frontier over the past decades, often supported by an active industrial policy favoring national firms. Accordingly, these countries no longer supply only raw materials and low-tech intermediate goods, but have also become competitors to industrial countries in high-tech goods – especially in fast-growing emerging economies. The last two years have also highlighted the fragility of global value chains. In this panel, we discuss which policies Europe should adopt and their possible consequences on European labor markets, as well as the externalities of such policies on emerging economies.