A race to the bottom in labor standards?: an empirical investigation

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 17years, we find that the labor standards in one country are positively correlated with those elsewhere (i.e. a...

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Bibliographische Detailangaben
Hauptverfasser: Davies, Ronald B. (VerfasserIn) , Vadlamannati, Krishna Chaitanya (VerfasserIn)
Dokumenttyp: Article (Journal)
Sprache:Englisch
Veröffentlicht: 21 January 2013
In: Journal of development economics
Year: 2013, Jahrgang: 103, Pages: 1-14
ISSN:0304-3878
DOI:10.1016/j.jdeveco.2013.01.003
Schlagworte:
Online-Zugang:Verlag, lizenzpflichtig, Volltext: https://doi.org/10.1016/j.jdeveco.2013.01.003
Verlag, lizenzpflichtig, Volltext: http://www.sciencedirect.com/science/article/pii/S0304387813000060
Volltext
Verfasserangaben:Ronald B. Davies, Krishna Chaitanya Vadlamannati

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520 |a 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 17years, 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. 
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