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International labour standards and product differentiation

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Author Info
Michela Limardi
Abstract

In the last decades the interaction between labour standards and international trade has assumed new importance. We use an incentive based-approach to assess the efficiency of trade policy instruments and private schemes for the promotion of international labour standards in Southern Firms. We show that trade policy instruments may implement minimum standards. On the other hand, we find that private schemes may overcome minimum standards if and only if there is an exclusive contract between the Multinational Enterprise (MNE) and the Southern firm, due to free riding effect.

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Paper provided by PSE (Ecole normale supérieure) in its series PSE Working Papers with number 2008-58.

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Date of creation: 2008
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Handle: RePEc:pse:psecon:2008-58

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  1. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law & Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
  2. Winand Emons, 1994. "Credence Goods and Fraudulent Experts," Diskussionsschriften dp9402, Universitaet Bern, Departement Volkswirtschaft.
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  3. Aghion, Philippe & Tirole, Jean, 1997. "Formal and Real Authority in Organizations," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 1-29, February.
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  4. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-29, March-Apr. [Downloadable!] (restricted)
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This page was last updated on 2009-12-18.

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