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The Case for an International Minimum Wage in the Context of Free Trade

  • Shirkosh, Mehdi

Minimum wages and work standards have been regulated in almost all countries around the world, however the level of these standards and the strength of implementation differ considerably. Minimum wages are usually higher in industrial countries but in many third world countries are either set at levels close to or below subsistence, or are not enforced at all. The increased ability of some third world countries to produce and export manufacturing goods, combined with the liberalisation of international markets, has seen the gap between wages in the two groups of countries become more significant over time. The acceleration of the globalisation process over the last two decades, however, has led to the question of minimum wages gaining recognition as a significant international issue. This study will discuss the issue of an international minimum wage as a means for promoting international economic growth and reduction of global poverty.

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File URL: http://mpra.ub.uni-muenchen.de/2463/1/MPRA_paper_2463.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 2463.

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Date of creation: Jan 2005
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Handle: RePEc:pra:mprapa:2463
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  1. Cecilia Garcia-Penalosa & Eve Caroli & Philippe Aghion, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1615-1660, December.
  2. Robin Boadway & Katherine Cuff, 1999. "A Minimum Wage Can Be Welfare-Improving and Employment-Enhancing," Cahiers de recherche CREFE / CREFE Working Papers 72, CREFE, Université du Québec à Montréal.
  3. Aoki, Masahiko & Kim, Hyung-Ki & Okuno-Fujiwara, Masahiro (ed.), 1998. "The Role of Government in East Asian Economic Development: Comparative Institutional Analysis," OUP Catalogue, Oxford University Press, number 9780198294917.
  4. Ajit Singh, 2004. "Labour Standards and the 'Race to the Bottom': Rethinking Globalization and Workers' Rights from Developmental and Solidaristic Perspectives," Oxford Review of Economic Policy, Oxford University Press, vol. 20(1), pages 85-104, Spring.
  5. Bourdieu, Jérôme & Reynaud, Bénédicte, 1999. "Social aspects of the decrease in working hours in 19th century France," CEPREMAP Working Papers (Couverture Orange) 9912, CEPREMAP.
  6. Basu, Kaushik & Genicot, Garance & Stiglitz, Joseph E., 1999. "Household labor supply, unemployment, and minimum wage legislation," Policy Research Working Paper Series 2049, The World Bank.
  7. Ana Corbacho & Gerd Schwartz, 2002. "Mexico; Experiences with Pro-Poor Expenditure Policies," IMF Working Papers 02/12, International Monetary Fund.
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