A race to the bottom in labor standards? An empirical investigation

• 成果类型: Article
• 署名作者: Davies, Ronald B.; Vadlamannati, Krishna Chaitanya
• 署名单位: University College Dublin; Trinity College Dublin; Ruprecht Karls University Heidelberg
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2013.01.003
• 发表日期: 2013
• 页码: 1-14
• 关键词: Labor standards; Competition for FDI; Spatial econometrics

摘要

One of the concerns over globalization is that as nations compete for investment, they relax labor standards to attract firms. Using spatial estimation on panel data for 135 countries over 17 years, we find that the labor standards in one country are positively correlated with those elsewhere (i.e. a cut in labor standards in other countries reduces labor standards in the country in question). This interdependence is more evident in labor practices (i.e. enforcement) than in labor laws. Further, while we find evidence of competition in both developed and developing countries, it is strongest among developing countries with weak standards. (C) 2013 Elsevier B.V. All rights reserved.