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[IWS] IADB: U.S. FREE TRADE AGREEMENTS AND THE ENFORCEMENT OF LABOR LAW IN LATIN AMERICA [26 November 2014]

IWS Documented News Service

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Institute for Workplace Studies-----------------Professor Samuel B. Bacharach

School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies

Cornell University

16 East 34th Street, 4th floor--------------------Stuart Basefsky

New York, NY 10016 -------------------------------Director, IWS News Bureau

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Inter-American Development Bank (IADB)

Working Paper 543

 

U.S. FREE TRADE AGREEMENTS AND THE ENFORCEMENT OF LABOR LAW IN LATIN AMERICA [26 November 2014]

by Sabina Dewan and Lucas Ronconi

http://www.iadb.org/en/research-and-data/publication-details,3169.html?pub_id=IDB-WP-543

or

http://publications.iadb.org/bitstream/handle/11319/6724/U.S.%20Free%20Trade%20Agreements%20and%20Enforcement%20of%20Labor%20Law%20in%20Latin%20America.pdf;jsessionid=EBAFA2E74AC5EEE87721F907C8F26BB0?sequence=1

[full-text, 23 pages]

 

Abstract:

 

This paper analyzes whether Free Trade Agreements (FTAs) signed between the United States and Latin American countries during the last decade produced higher enforcement of labor regulations. The paper computes before-after estimates of the effect of FTAs on labor inspections and exploits variation across countries using non-signers as a comparison group. The empirical strategy benefits from the fact that about half of Latin American countries have signed a trade agreement with the United States. Difference-in-differences estimates suggest that signing an FTA produced a 20 percent increase in the number of labor inspectors and a 60 percent increase in the number of inspections. The North American Free Trade Agreement (NAFTA), however, does not appear to have the same positive impacts on Mexico. The paper concludes with a discussion of these results.

 

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