Diffusion of Labor Standards from Origin to Host Countries: Cross County Evidence from Multinational Companies in Africa

25 Pages Posted: 20 Feb 2014

See all articles by Merima Ali

Merima Ali

Chr. Michelsen Institute (CMI)

Adnan Seric

United Nations Industrial Development Organization (UNIDO)

Date Written: February 2014

Abstract

This study empirically examines diffusion of labor standards from origin to host countries by investigating whether better labor standards of MNCs’ origin countries are correlated with higher wages of workers in host countries in Africa. MNCs originating from countries with more rights of association and collective bargain and those coming from countries with unions that have strong wage bargaining power are found to pay significantly higher wages to their workers in host countries. These findings highlight that, although domestic policies and institutions may be important determinants of labor-related standards, they do not operate in isolation from external influences coming from origin countries.

Keywords: Labor standards, Multinational companies, origin country, host country, wages, Africa

JEL Classification: F23, J80

Suggested Citation

Ali, Merima and Seric, Adnan, Diffusion of Labor Standards from Origin to Host Countries: Cross County Evidence from Multinational Companies in Africa (February 2014). Robert Schuman Centre for Advanced Studies Research Paper No. 2014/22. Available at SSRN: https://ssrn.com/abstract=2398316 or http://dx.doi.org/10.2139/ssrn.2398316

Merima Ali (Contact Author)

Chr. Michelsen Institute (CMI) ( email )

P.O.Box 6033 Bedriftssenteret
N-5892 Bergen, 5006
Norway

Adnan Seric

United Nations Industrial Development Organization (UNIDO) ( email )

Wagramer Strasse 5
P.O. Box 300
Vienna, A-1400
Austria

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