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Multinationals and Anti-sweatshop Activism

Ann Harrison () and Jason Scorse

American Economic Review, 2010, vol. 100, issue 1, 247-73

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)

JEL-codes: F23 J31 J81 L67 O14 O15 (search for similar items in EconPapers)
Date: 2010
Note: DOI: 10.1257/aer.100.1.247
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