Multinationals and Anti-Sweatshop Activism

Authors: Harrison, Ann; Scorse, Jason

Source: The American Economic Review, Volume 100, Number 1, March 2010 , pp. 247-273(27)

Publisher: American Economic Association

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Abstract:

During the 1990s, anti-sweatshop activists campaigned to improve conditions for workers in developing countries. This paper analyzes the impact of anti-sweatshop campaigns in Indonesia on wages and employment. Identification is based on comparing the wage growth of workers in foreign-owned and exporting firms in targeted regions or sectors before and after the initiation of anti-sweatshop campaigns. We find the campaigns led to large real wage increases for targeted enterprises. There were some costs in terms of reduced investment, falling profits, and increased probability of closure for smaller plants, but we fail to find significant effects on employment.

Document Type: Research article

DOI: http://dx.doi.org/10.1257/aer.100.1.247

Publication date: 2010-03-01

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The American Economic Review is a general-interest economics journal. The journal is published quarterly and contains articles on a broad range of topics. Established in 1911, the AER is among the nation's oldest and most respected scholarly journals in the economics profession.
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