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Does Trade Openess Affect Core Labor Standards ?

Arestoff, Florence; Granger, Clotilde (2004), Does Trade Openess Affect Core Labor Standards ?, European Trade Study Group, Sixth Annual Conference, 2004-09, Nottingham, Royaume-Uni

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Type
Communication / Conférence
Date
2004
Conference title
European Trade Study Group, Sixth Annual Conference
Conference date
2004-09
Conference city
Nottingham
Conference country
Royaume-Uni
Pages
19
Metadata
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Author(s)
Arestoff, Florence
Granger, Clotilde
Abstract (FR)
Based on cross-country data from a wide range of developed and developing countries, this study, using an original and synthetic indicator, empirically analyses the incidence of openness to trade on the level of core labour standards. In the first part of our study, when the model is estimated through the OLS method, we find a positive and significant influence of trade on core labour standards. However, literature leads us to assume that trade openness is endogenous. In the second part, using the instrumental variables (IV) method, we show that openness to trade is no longer significant. We test different vectors of instruments that validate the robustness of our results. We conclude that, in the ongoing debate about the incidence of trade openness on the level of core labour standard, increasing openness would not lead to a levelling down, but rather labour standards would depend on national characteristics such as economic and social development.
Subjects / Keywords
Labour standards; Trade openness; Instrumental variables method
JEL
F16 - Trade and Labor Market Interactions
F13 - Trade Policy; International Trade Organizations

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