Does Customer Auditing Help Chinese Workers?
Auditing by downstream firms has limited effects on Chinese firmsâ€™ adherence to labor standards and other measures of blue collar workers well-being. Auditing does not affect the suppliersâ€™ blue-collar employeesâ€™ wages, probability of belonging to a union, or likelihood of working overtime. However, audited firms are more likely to provide rural migrant workers pensions, business medical insurance, and unemployment insurance.Â
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- Jagdish Bhagwati, 1995. "Trade Liberalisation and ‘Fair Trade’ Demands: Addressing the Environmental and Labour Standards Issues," The World Economy, Wiley Blackwell, vol. 18(6), pages 745-759, November.
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