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학술저널

Direct Democracy and Labour Standards of a Small Open Economy

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This paper investigates the controversial relationship between labour standards and globalisation within a 2×2 Heckscher-Ohlin-Mayer political-economy trade model. We adopt the median voter model to characterise the labour standards chosen under majority voting. We found that labour standards are more lax in economies with large income inequalities. More importantly, we also show that globalisation may or may not promote stricter labour standards depending on the factor abundance of each country. Thus, a race to the bottom is not an necessary implication of globalisation.

Abstract

Ⅰ. Introduction

Ⅱ. The Impact of Labour Standards on Production

Ⅲ. Endogenous Labour Standards

Ⅳ. Globalisation and Labour Standards

Ⅴ. Concluding Remarks

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