Laws of Labor: Core Labor Standards and Global Trade

Abstract:     
The authors say that labor markets and their regulation are undergoing sweeping reforms due to the progress of international trade negotiations in developing countries. Improved labor rights, they note, create a solid base for strong and stable economic growth and attract foreign direct investment, which contributes to job creation and poverty reduction. Studies have shown that the Core Labor Standards (freedom of association, the right to collective bargaining, abolition of forced labor, elimination of child labor, and freedom from discrimination) have contributed to higher productivity growth and other economic factors, they state. For example, they explain, the eradication of child and forced labor generally leads to economic growth because the elimination of cheap labor forces employers towards technological upgrades that positively impact productivity.

Number of Pages in PDF File: 6

Keywords: labor laws, child labor, core labor standards

JEL Classification: J40

Accepted Paper Series