How power distance shapes social and employment protections in Asian societies

Ulrike Sengstschmid and Chan-Hoong Leong

Chapter 19 in Elgar Companion to Managing People Across the Asia-Pacific, 2023, pp 377-402 from Edward Elgar Publishing

Abstract: Asia is the fastest growing continent in the world, and home to a population of nearly 4 billion people. This region is poised to become the next engine of growth for the global economy, powered by the younger and more vibrant labour force and excellent infrastructure. While the economic prospects for the continent are promising, the region is not a monolith as each nation-state demonstrates a unique developmental trajectory. This chapter will examine the intersections between cultural values and social (i.e., old age, pensions, disability) and employment- (i.e., sickness, maternity benefits, unemployment, work injury) related protections using data from a wide range of resources including the International Labour Organization, Hofstede’s cultural values framework, and the World Bank. Overall, the review shows that power distance, as a global value dimension measuring social class differentiation precipitated reduced Gross Domestic Product per capita, greater disparity in income distribution, sharper gender role differentiation, stronger exclusionary attitude to people with non-heterosexual orientation, and reduced social security and workplace protection. There are, however, considerable differences among the Asian societies vis-à-vis the rest of the world in the context of gender and sexual orientation. In addition, power distance predicted reduced social and employment-related protections in Asia more than other regions. The findings are discussed in the context of human capital development, sustainable economic growth, and the unique cultural values and context practised in the region.

Keywords: Asian Studies; Business and Management; Economics and Finance (search for similar items in EconPapers)
Date: 2023
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