Oslington, Paul (2005): Trade and the distributional politics of international labour standards.
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Abstract
This paper constructs a simple general equilibrium model of the trade and distributional effects of spreading advanced country international labour standards to developing countries. Labour standards (including minimum safety requirements, prohibition of prison and child labour, and rights to unionise) are represented as a floor to the cost of employing labour. The model shows how the spread of standards affects the terms of trade and pattern of international specialisation, and can shift unskilled unemployment from advanced to developing countries, redistribute income among groups of factor owners in different countries. Political support for labour standards is predicted to come from a coalition of advanced country unskilled workers with insecure jobs and the secure unskilled in developing countries. Opposition is predicted from owners of other factors. Overall country lobbying positions in international forums will depend on the relative strengths of the groups within the country.
Item Type: | MPRA Paper |
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Original Title: | Trade and the distributional politics of international labour standards |
Language: | English |
Keywords: | Trade; International Labour Standards; Harmonization |
Subjects: | F - International Economics > F1 - Trade > F16 - Trade and Labor Market Interactions |
Item ID: | 963 |
Depositing User: | Paul Oslington |
Date Deposited: | 29 Nov 2006 |
Last Modified: | 27 Sep 2019 05:08 |
References: | Basu, K., Ed. (2003). International Labor Standards: History, Theory, and Policy Options. Oxford, Blackwell. Bhagwati, J. and R. E. Hudec, Eds. (1996). Fair Trade and Harmonization: Prerequisites for Free Trade? Massachusetts, MIT Press. Brecher, R. A. (1974). “Minimum Wage Rates and the Pure Theory of International Trade.” Quarterly Journal of Economics 88: 98-116. Brown, D. K. (2001). “Labor Standards: Where Do They Belong on the International Trade Agenda?” Journal of Economic Perspectives 15(3): 89-112. Brown, D. K., A. V. Deardorff and R. M. Stern (1996). "International Labour Standards and Trade: A Theoretical Analysis" in Fair Trade and Harmonization: Prerequisites for Free Trade? edited by Bhagwati and Hudec. Massachusetts, MIT Press. Elliott, K. A. and R. B. Freeman (2003). Can Labor Standards Improve under Globalization? Washington, D.C., Institute for International Economics. Lee, E. (1997). “Globalization and Labour Standards: A Review of Issues.” International Labour Review 136(2): 173-89. Maskus, K. E. (1997). “Should Core Labor Standards Be Imposed through International Trade Policy.” World Bank Research Working Paper 1817. Naghavi, A. J. (2003). Asymmetric Labor Markets and the Location of Firms: Are Multinationals Attracted to Weak Labor Standards. University College Dublin. Woodland, A. D. (1982). International Trade and Resource Allocation Amsterdam, North Holland. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/963 |