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We have become a service economy and these are low paying jobs. Employers are getting employee rights removed and collective bargaining rights are disappearing. Without these rights the worker has to accept the pay and work conditions that they are given. The companies can offer less pay for more work and get away with it. Work place injuries also go up in these conditions.

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11y ago
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8y ago

Globalization enables the movement of business activities from one country to another with very limited restrictions. hence it enables companies to outsource their processes to those parts of the world with relatively low cost of labor in order to make cost savings, thereby forcing most governments to keep the cost of labor relatively low in their countries in order to remain attractive to those companies seeking to benefit from low labor cost. most governments control labor cost by setting minimum wage limits which are relatively low.

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13y ago

The term 'developing' is key to this answer, the workers are new and basically in a training mode,thus do not qualify for experienced worker's wages.

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Q: Why are wages low in developing countries?
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