Comparative Advantage, Trade and Labour Standards

Matthias Busse

Economics Bulletin, 2002, vol. 6, issue 2, 1-8

Abstract: This paper empirically explores the relationship between labour standards and comparative advantage. Focusing on unskilled-labour-intensive goods and core labour standards, the results show that the effects of low standards depend on the type of standard: Weaker basic union rights are associated with a stronger comparative advantage. Forced and child labour also lead to an increase in the endowment of unskilled labour, and hence improve comparative advantage in unskilled-labour-intensive goods the opposite occurs with discrimination against females.

JEL-codes: F1 (search for similar items in EconPapers)
Date: 2002-05-09
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