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Globalization, Women’s Economic Rights and Forced Labor

  • Eric Neumayer

    (London School of Economics)

  • Indra de Soysa

    (Norwegian University of Science & Technology NTNU , Norway)

Globalization critics are concerned that increased trade openness and foreign direct investment exacerbate existing economic disadvantages of women and foster conditions for forced labor. Defenders of globalization argue instead that as countries become more open and competition intensifies, discrimination against any group, including women, becomes more difficult to sustain and is therefore likely to recede. The same is argued with respect to forced labor. This article puts these competing claims to an empirical test. We find that countries that are more open to trade provide better economic rights to women and have a lower incidence of forced labor. This effect holds in a global sample as well as in a developing country sub-sample and holds also when potential feedback effects are controlled via instrumental variable regression. The extent of an economy’s ‘penetration’ by foreign direct investment has no statistically significant impact. Globalization might weaken the general bargaining position of labor such that outcome-related labor standards might suffer. However, being more open toward trade is likely to promote rather than hinder the realization of two labor rights considered as core or fundamental by the International Labour Organization, namely the elimination of economic discrimination and of forced labor.

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Paper provided by EconWPA in its series Labor and Demography with number 0509011.

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Date of creation: 27 Sep 2005
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Handle: RePEc:wpa:wuwpla:0509011
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  1. Seguino, Stephanie, 2000. "Gender Inequality and Economic Growth: A Cross-Country Analysis," World Development, Elsevier, vol. 28(7), pages 1211-1230, July.
  2. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," Journal of Law, Economics and Organization, Oxford University Press, vol. 15(1), pages 222-79, April.
  3. Eric Neumayer, 2006. "Do international human rights treaties improve respect for human rights?," Conferences on New Political Economy, in: Max Albert & Stefan Voigt & Dieter Schmidtchen (ed.), Conferences on New Political Economy, edition 1, volume 23, pages 69-104(36 Mohr Siebeck, Tübingen.
  4. Abu-Ghaida, Dina & Klasen, Stephan, 2003. "The Costs of Missing the Millennium Development Goal on Gender Equity," Discussion Papers in Economics 2, University of Munich, Department of Economics.
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  11. Stephanie Seguino, 1997. "Gender wage inequality and export-led growth in South Korea," Journal of Development Studies, Taylor & Francis Journals, vol. 34(2), pages 102-132.
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  15. Forsythe, Nancy & Korzeniewicz, Roberto Patricio & Durrant, Valerie, 2000. "Gender Inequalities and Economic Growth: A Longitudinal Evaluation," Economic Development and Cultural Change, University of Chicago Press, vol. 48(3), pages 573-617, April.
  16. Neumayer, Eric & Spess, Laura, 2005. "Do bilateral investment treaties increase foreign direct investment to developing countries?," World Development, Elsevier, vol. 33(10), pages 1567-1585, October.
  17. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output per Worker than Others?," NBER Working Papers 6564, National Bureau of Economic Research, Inc.
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