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Are Labour Provisions in Free Trade Agreements Improving Labour Conditions?

Author

Listed:
  • Inmaculada Martinez-Zarzoso
  • Hendrik Kruse

    (LEO - Laboratoire d'Économie d'Orleans [FRE2014] - UO - Université d'Orléans - UT - Université de Tours - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper investigates the impact of labour provisions in Free Trade Agreements (FTAs) on labour market conditions in the ratifying countries. Using panel data for up to 96 countries and a time-span from 1995 to 2008, matching techniques and a difference-in-differences approach are applied to identify the effect of FTAs on labour conditions, distinguishing between those with and without labour provisions. The results show that FTAs partially improve labour conditions in the participating countries, and that there are differences in these outcomes between agreements with specific labour provisions and those without. Empirical analysis reveals that labour provisions might be a suitable instrument to ensure labour standards, but also that a ‘global race to the bottom’ may not be prevented through these provisions per-se. The correct targeting of labour provisions is highly likely to play a crucial role in the context of avoiding a race to the bottom.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Inmaculada Martinez-Zarzoso & Hendrik Kruse, 2019. "Are Labour Provisions in Free Trade Agreements Improving Labour Conditions?," Post-Print hal-03676022, HAL.
    • Handle: RePEc:hal:journl:hal-03676022
    DOI: 10.1007/s11079-019-09545-7
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    More about this item

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor

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