I've observed that in developing nations, people dedicate their labor to providing for themselves while in developed nations, people dedicate their labor to the market. This observation sheds light n why developing nations often struggle with poverty and economic underdevelopment.
The difference in labor dedication between developing and developed nations has a number of consequences. First, it means that developing nations have less labor available to the market overall. With less labor available, businesses would have a lesser incentive to offshore their operations to those nations. Even if labor costs in China have surged, many firms would still choose to remain in China than move their operations to another developing nation because of that aspect of developing nations.
Second, the difference in labor dedication leads to different levels of productivity. Productivity is the amount of output that is produced per unit of input. In developing nations, productivity is lower because people are working in small, inefficient businesses or farms. Many are working jobs that they aren't specialists in. Meanwhile, in developed nations, people are working in more efficient businesses because those businesses are operated and developed by people that have gained a specialty in their roles. By being able to work in the profession that they specialize in, professionals in developed nations are able to maximize their output at the lowest costs and the value created from their work benefits their employer, the firm they work for, and their community.
Third, the difference in labor dedication leads to different levels of income. In developing nations, income is lower because people are not as productive. In developed nations, income is higher because people are more productive. There will be differences arising due to the type of work and the supply and demand of certain occupations but those differences will even out as the labor force participation rates of those nations match that of developed nations.
In conclusion, the difference in labor dedication between developing and developed nations is one of the reasons why developing nations are poor. By dedicating their labor to the market, developed nations are able to attract more business and grow their economies simultaneously.