American Economic Review: Vol. 100 No. 1 (March 2010)


Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter


AER - All Issues

AER Forthcoming Articles

Multinationals and Anti-sweatshop Activism

Article Citation

Harrison, Ann, and Jason Scorse. 2010. "Multinationals and Anti-sweatshop Activism." American Economic Review, 100(1): 247-73.

DOI: 10.1257/aer.100.1.247


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)

Article Full-Text Access

Full-text Article

Additional Materials

Download Data Set (14.15 MB)


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

American Economic Review

Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)


AER - All Issues

AER - Forthcoming Articles

Virtual Field Journals

AEA Member Login:

AEAweb | AEA Journals | Contact Us