By Raymond Robertson, Drusilla Brown, Gaëlle Le Borgne Pierre, Maria Laura Sanchez-Puerta
Alternate liberalization holds either grants and perils for staff all over the world. This ebook makes use of a brand new analytical framework to teach that whereas globalization has been linked to advancements in operating stipulations within the uncovered sectors (apparel and textile), questions stay concerning the sturdiness and generalization of such advancements.
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Additional info for Globalization, Wages, and the Quality of Jobs: Five Country Studies
Finally, the role of qualitative analysis is also potentially significant, especially in understanding the roles of safeguards and monitoring. Qualitative evidence from Cambodia suggests that safeguards and monitoring play an important role in improving working conditions (Polaski 2006). External pressure from the ILO also played a significant role in changing government regulation in Indonesia and El Salvador. These successes raise interesting hypotheses. For example, it is possible that FDI without monitoring may not have either increased wages or improved working conditions.
Cheaper, lower quality products are squeezed from the market. Removal of quantitative restrictions should reverse the process. Indeed, Harrigan and Barrows (2006) documented a decline in average quality of apparel imports by the United States accompanying the end of the MFA. The decline in the average quality of apparel imports is welfare-improving when viewed from the perspective of Western consumers because the quality upgrading that occurred during the tenure of the MFA was an artifact of its implementation.
Winters, McCulloch, and McKay (2004) note that the very low skill level of the least skilled workers in developing countries may be of little use to multinationals. Equivalently, skilled labor by developing country standards may be relatively unskilled by industrial country standards. Thus, when trade-oriented producers employ labor in developing countries, they may draw principally from the top end of the skill distribution. The Winters et al. argument is consistent with evidence that multinationals avoid locations with a high prevalence of child labor.