The Ambiguous Outcome of NGOsâ€™ Activism in Developing Countries
Many Developing Countries ratified ILO Fundamental Conventions and authorized local labour unions. Multinational companies producing in these countries pay more when NGOs campaigns take place and reputation counts. However, whether this external pressure from NGOs benefit local workers outside MNEs affiliates in host countries remains an open issue. Segmented and weak local labour unions often rely on external funding from the North and technical assistance by labour NGOs. They need to increase their visibility in the labour intensive sectors targeted by Northern donations and activism. To address these issues we develop a bargaining model adapted to peculiarities of labour market institutions in developing countries, i.e. external funding and the complementarity with labour NGOs. This model is estimated on data on Indonesian manufacturing firms, before and after the authorisation of labour unions, in sensitive and non sensitive sectors. We find that, in sector with visibility for labour unions, the net outcome on wages of the presence of NGOs is negative. The external fundings imply a distortion in the objective of labour unions, confronted with the constraint of increasing the employment in the formal sector.
|Date of creation:||Sep 2011|
|Date of revision:|
|Contact details of provider:|| Postal: Welthandelsplatz 1, 1020 Vienna, Austria|
Web page: http://www.ersa.org
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Aldashev, Gani & Verdier, Thierry, 2009.
"When NGOs go global: Competition on international markets for development donations,"
Journal of International Economics,
Elsevier, vol. 79(2), pages 198-210, November.
- Gani Aldashev & Thierry Verdier, 2008. "When NGOs Go Global: Competition on International Markets for Development Donations," Carlo Alberto Notebooks 93, Collegio Carlo Alberto.
- Gani Aldashev & Thierry Verdier, 2009. "When NGOs go global: Competition on international markets for development donations," Post-Print halshs-00754327, HAL.
- repec:hrv:faseco:4784029 is not listed on IDEAS
- Martins, Pedro S., 2004.
"Rent Sharing Before and After the Wage Bill,"
IZA Discussion Papers
1376, Institute for the Study of Labor (IZA).
- Pedro S. Martins, 2008. "Rent Sharing Before and After the Wage Bill," Working Papers 12, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
- Pedro S. Martins, 2004. "Rent Sharing Before and After the Wage Bill," Discussion Paper Series, Department of Economics 200405, Department of Economics, University of St. Andrews.
- Pedro S. Martins & Luiz Alberto Esteves, 2006.
"Is There Rent Sharing In Developing Countries? Matched-Panel Evidence From Brazil,"
Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting]
158, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
- Pedro S. Martins & Luiz A. Esteves, 2008. "Is There Rent Sharing in Developing Countries? Matched-Panel Evidence from Brazil," Working Papers 14, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
- Martins, Pedro S. & Esteves, Luiz A., 2006. "Is There Rent Sharing in Developing Countries? Matched-Panel Evidence from Brazil," IZA Discussion Papers 2317, Institute for the Study of Labor (IZA).
- Pedro Martins & Luiz Alberto Esteves, 2007. "Is There Rent Sharing In Developing Countries? Matched-Panel Evidence from Brazil," Working Papers 0060, Universidade Federal do Paraná, Department of Economics.
- Pol Antras & Elhanan Helpman, 2004.
Journal of Political Economy,
University of Chicago Press, vol. 112(3), pages 552-580, June.
- Pol Antràs & Elhanan Helpman, 2003. "Global Sourcing," NBER Working Papers 10082, National Bureau of Economic Research, Inc.
- Antràs, Pol & Helpman, Elhanan, 2004. "Global Sourcing," CEPR Discussion Papers 4170, C.E.P.R. Discussion Papers.
- Pol Antras & Elhanan Helpman, 2003. "Global Sourcing," Harvard Institute of Economic Research Working Papers 2005, Harvard - Institute of Economic Research.
- Antras, Pol & Helpman, Elhanan, 2004. "Global Sourcing," Scholarly Articles 3196327, Harvard University Department of Economics.
- Ann Harrison & Jason Scorse, 2010. "Multinationals and Anti-sweatshop Activism," American Economic Review, American Economic Association, vol. 100(1), pages 247-73, March.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa11p555. 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: (Gunther Maier)
If references are entirely missing, you can add them using this form.