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Economic Growth and Labor Standards: Evidence from a Dynamic Panel Data Model

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  • Michaël Bonnal

Abstract

The relations between economic growth and international labor standards are explored in a panel of 121 countries from 1974 to 2004. A large literature has empirically tested the neoclassical and endogenous growth models using cross‐sectional or panel regressions. Here, the growth model is augmented with labor standards. A dynamic panel data model is used to account for the endogeneity of the determinants of economic growth and labor standards. Two measures of labor standards are used: the rate of work injuries and the rate of strikes and lockouts. The estimation results show that higher levels of labor standards are associated with higher rates of economic growth.

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  • Michaël Bonnal, 2010. "Economic Growth and Labor Standards: Evidence from a Dynamic Panel Data Model," Review of Development Economics, Wiley Blackwell, vol. 14(1), pages 20-33, February.
  • Handle: RePEc:bla:rdevec:v:14:y:2010:i:1:p:20-33
    DOI: 10.1111/j.1467-9361.2009.00536.x
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