Management Papers
Document Type
Journal Article
Date of this Version
3-2010
Publication Source
American Economic Review
Volume
100
Issue
1
Start Page
247
Last Page
273
DOI
10.1257/aer.100.1.247
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.
Recommended Citation
Harrison, A. E., & Scorse, J. (2010). Multinationals and Anti-Sweatshop Activism. American Economic Review, 100 (1), 247-273. http://dx.doi.org/10.1257/aer.100.1.247
Included in
Business Administration, Management, and Operations Commons, International Business Commons
Date Posted: 27 November 2017
This document has been peer reviewed.