Improving Labor Compliance in Developing Countries
Description
Improving labor conditions around the world is a complex, lengthy, and multi-stakeholder aspiration. The goal of this paper is to complement a broad overview of existing research with new empirical results that evaluate the contributions of different stakeholders in improving labor compliance. The results suggest that rule of law and exporting-country government capacity may be the most significant factor in improvements in labor compliance. Other stakeholders also play important roles, of course, but domestic capacity is significantly associated with closing the gap between labor law and labor practice. These results raise a critical question of how developed (importing) countries can better incentivize exporting-country governments to close the gap between labor law and labor practice, not just for exporting firms, but throughout the country. One of the main policy implications is that a renewed focus on trade agreements between developed and developing countries would be one of the most effective ways to improve labor conditions in developing countries.Department
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Citation
Robertson, Raymond (2022). Improving Labor Compliance in Developing Countries. Mosbacher Institute for Trade, Economics & Public Policy. Available electronically from https : / /hdl .handle .net /1969 .1 /196908.
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