Chains of Love? Global Production and the Firm-Level Diffusion of Labor Standards
Under what conditions does the global economy serve as a means for the diffusion of labor standards and practices? We anticipate variation among internationally engaged firms in their propensity to improve labor standards. Upgrading is most likely when a firm's products exhibit significant cross-market differences in markups, making accessing high-standards overseas markets particularly profitable. Additionally, upgrading is more likely when lead firms attach a high salience to labor standards. Therefore, while participation in global production induces “trading up” behaviors among firms overall, the effect strength varies across industries. We test our expectations via a survey experiment, which queries foreign firms operating in Vietnam about their willingness to invest in labor-related upgrading. We find strong evidence for the effect of markups on upgrading choices and suggestive evidence for the saliency mechanism.
Duke Scholars
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- Political Science & Public Administration
- 4408 Political science
- 4407 Policy and administration
- 3801 Applied economics
- 1606 Political Science
- 1402 Applied Economics
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Published In
DOI
EISSN
ISSN
Publication Date
Volume
Issue
Start / End Page
Related Subject Headings
- Political Science & Public Administration
- 4408 Political science
- 4407 Policy and administration
- 3801 Applied economics
- 1606 Political Science
- 1402 Applied Economics