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Harrison, Ann, and
Jason Scorse. 2010. "Multinationals and Anti-sweatshop Activism."
,
100(1): 247-73.
Show Article Details
DOI: 10.1257/aer.100.1.247
Abstract:During the 1990s, anti-sweatshop activists campaigned to improve conditions
for workers in developing countries. This paper analyzes the impact of anti-sweatshop
campaigns in Indonesia on wages and employment. Identification is
based on comparing the wage growth of workers in foreign-owned and exporting
firms in targeted regions or sectors before and after the initiation of anti-sweatshop
campaigns. We find the campaigns led to large real wage increases
for targeted enterprises. There were some costs in terms of reduced investment,
falling profits, and increased probability of closure for smaller plants, but we
fail to find significant effects on employment. (JEL F23, J31, J81, L67, O14, O15)
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Authors:
Harrison, Ann (World Bank and U CA, Berkeley)
Scorse, Jason (Monterey Institute of International Studies)
JEL Classifications:
F23: Multinational Firms; International Business
J31: Wage Level and Structure; Wage Differentials
J81: Labor Standards: Working Conditions
L67: Other Consumer Nondurables
O14: Industrialization; Manufacturing and Service Industries; Choice of Technology
O15: Economic Development: Human Resources; Human Development; Income Distribution; Migration
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