IDEAS home Printed from https://ideas.repec.org/p/mse/wpsorb/bla04088.html
   My bibliography  Save this paper

Core labour standards and economic growth

Author

Listed:
  • Rémi Bazillier

    () (TEAM)

Abstract

The paper focuses on the impact of international core labour standards on economic growth. In a first step, we build a novel indicator, using correspondence analysis. The paper focuses on the four core labour standards recognized in the 1998 ILO Declaration on Fundamental Principles and Rights at Work. Our two models (modelling of the steady-state-per capita income and modelling of the transition of per-capita income to its steady state value) are estimated for a large panel of countries (108) and, then, only for developing countries, for the period 1960 -1996. We use the Two Stage Least Square Method, to correct for potential problems of endogeneity. For the first model, we find that countries with higher labour standards have a higher steady-state level, all things being equal. Labour standards have positive and robust effects on per-capita income both for the world and developing countries. In the second model, the effects are non-linear. The effects of labour standards are positive and significant but are stronger for countries with medium or good labour standards. Overall, a good compliance with fundamental rights of workers has a positive effect on the long-term income and long-term growth. Thus, the development of core labour standards should be one of the goals of the development strategies.

Suggested Citation

  • Rémi Bazillier, 2004. "Core labour standards and economic growth," Cahiers de la Maison des Sciences Economiques bla04088, Université Panthéon-Sorbonne (Paris 1).
  • Handle: RePEc:mse:wpsorb:bla04088
    as

    Download full text from publisher

    File URL: ftp://mse.univ-paris1.fr/pub/mse/cahiers2004/Bla04088.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Russell Davidson & James G. MacKinnon, 1999. "Artificial Regressions," Working Papers 978, Queen's University, Department of Economics.
    2. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, Oxford University Press, vol. 114(1), pages 83-116.
    3. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-427, June.
    4. repec:fth:michin:457 is not listed on IDEAS
    5. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 407-443.
    6. Davidson, Russell & MacKinnon, James G., 1989. "Testing for Consistency using Artificial Regressions," Econometric Theory, Cambridge University Press, vol. 5(03), pages 363-384, December.
    7. Harrison, Ann E & Leamer, Edward, 1997. "Labor Markets in Developing Countries: An Agenda for Research," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 1-19, July.
    8. Bagwell,K. & Staiger,R.W., 1998. "The simple economics of labor standards and the Gatt," Working papers 9, Wisconsin Madison - Social Systems.
    9. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 407-437.
    10. Jean-Marie Baland & James A. Robinson, 2000. "Is Child Labor Inefficient?," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 663-679, August.
    11. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 38(2), pages 112-134.
    12. Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-563, July.
    13. Stern, R.M., 2000. "Labor Standards and Trade," Working Papers 457, Research Seminar in International Economics, University of Michigan.
    14. Brown, D.K. & Dearorff, A.V. & Stern, R.M., 1993. "International Labor Standards and Trade: A Theoretical Analysis," Working Papers 333, Research Seminar in International Economics, University of Michigan.
    15. Drusilla K. Brown, 2000. "International labor standards in the world trade organization and the international labor organization," Review, Federal Reserve Bank of St. Louis, issue Jul, pages 105-114.
    16. Cohen, Daniel & Soto, Marcelo, 2002. "Why are Poor Countries Poor? A Message of Hope which Involves the Resolution of a Becker/Lucas Paradox," CEPR Discussion Papers 3528, C.E.P.R. Discussion Papers.
    17. Kenneth A. Swinnerton, 1997. "An Essay on Economic Efficiency and Core Labour Standards," The World Economy, Wiley Blackwell, vol. 20(1), pages 73-86, January.
    18. Maskus, Keith E., 1997. "Should core labor standards be imposed through international trade policy?," Policy Research Working Paper Series 1817, The World Bank.
    19. Barro, Robert J & Lee, Jong Wha, 1996. "International Measures of Schooling Years and Schooling Quality," American Economic Review, American Economic Association, vol. 86(2), pages 218-223, May.
    20. Bohning, W. R., 2003. "Gaps in basic workers' rights : measuring international adherence to and implementation of the organization's values with public ILO data," ILO Working Papers 993616463402676, International Labour Organization.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rémi Bazillier & Nicolas Sirven, 2006. "Les normes fondamentales du travail contribuent-elles à réduire les inégalités ?," Revue Française d'Économie, Programme National Persée, vol. 21(2), pages 111-146.
    2. Thierry Baudassé & Rémi Bazillier, 2010. "Migration and Trade Union Rights," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 146(IV), pages 677-707, December.
    3. repec:dau:papers:123456789/5832 is not listed on IDEAS
    4. Gaëlle Ferrant, 2014. "The Multidimensional Gender Inequalities Index (MGII): A Descriptive Analysis of Gender Inequalities Using MCA," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 115(2), pages 653-690, January.
    5. Jean-Marc Siroën, 2012. "Core labour standards and exports," Working Papers DT/2012/18, DIAL (Développement, Institutions et Mondialisation).
    6. repec:dau:papers:123456789/10660 is not listed on IDEAS
    7. repec:dau:papers:123456789/3202 is not listed on IDEAS
    8. Rémi BAZILLIER, 2009. "An Estimation of the Level of Core Labour Standards between 1970 and 1995 : towards a time-series index of Core Labour Standards," LEO Working Papers / DR LEO 219, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.

    More about this item

    Keywords

    Economic growth; labour standards; economic development.;

    JEL classification:

    • J80 - Labor and Demographic Economics - - Labor Standards - - - General
    • J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mse:wpsorb:bla04088. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lucie Label). General contact details of provider: http://edirc.repec.org/data/msep1fr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.