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

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Title: A race to the bottom in labour standards? An empirical investigation
Authors: Davies, Ronald B.
Vadlamannati, Krishna Chaitanya
Permanent link: http://hdl.handle.net/10197/3667
Date: Nov-2011
Abstract: Among the many concerns over globalization is that as nations compete for mobile firms, they will relax labour standards as a method of lowering costs and attracting investment. Using spatial estimation on panel data for 148 developing countries over 18 years, we find that the labour standards in one country are positively correlated with the labour standards elsewhere (i.e. a cut in labour standards in other countries reduces labour standards in the country in question). This interdependence is more evident in labour practices (i.e. enforcement) than in labour laws. Further, competition is most fierce in those countries with already low standards.
Funding Details: Not applicable
Type of material: Working Paper
Publisher: University College Dublin. School of Economics
Keywords: Labour StandardsCompetition for FDISpatial Econometrics
Subject LCSH: Labor laws and legislation
Investments, Foreign
Space in economics
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Working Papers & Policy Papers

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