The Generalized System of Preferences and NGO Activism

Lionel Fontagné and Michela Limardi (michela.limardi@univ-paris1.fr)
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Michela Limardi: Centre d'Economie de la Sorbonne, RIME lab (Université de Lille)

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: Can preferential market access help to enforce Labor Laws in beneficiary countries? The Generalized System of Preferences (GSP) is accorded conditional on compliance with labor rights. The United States scheme leaves room for petitioning and revising the scheme upon request by interest groups. We here focus on such a review episode, and ask whether it led to the better enforcement of domestic Labor Laws in Indonesia. Using data from Indonesian Manufacturing firms, we show that GSP renegotiation combined with the activism of workers' rights groups helped increase firm-level average wages up to the minimum wage level, not only inside but also outside the export sector. GSP leverage allowed labor NGOs to act more effectively by putting the violation of national Labor Laws and poor working conditions under the international spotlight

Keywords: GSP; labor standards; NGOs; wage determination (search for similar items in EconPapers)
JEL-codes: J52 J80 (search for similar items in EconPapers)
Date: 2021-04
New Economics Papers: this item is included in nep-int, nep-lab and nep-sea
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Related works:
Journal Article: The Generalized System of Preferences and NGO activism (2024)
Working Paper: The Generalized System of Preferences and NGO activism (2024)
Working Paper: The Generalized System of Preferences and NGO activism (2024)
Working Paper: The Generalized System of Preferences and NGO activism (2024)
Working Paper: The Generalized System of Preferences and NGO Activism (2021)
Working Paper: The Generalized System of Preferences and NGO Activism (2021)
Working Paper: The Generalized System of Preferences and NGO Activism (2021)
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