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U.S. Free Trade Agreements and Enforcement of Labor Law in Latin America

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  • Sabina Dewan
  • Lucas Ronconi

Abstract

The paper provides difference†in†differences estimates suggesting that Latin American countries that signed a free trade agreement with the United States experienced an increase in the number of labor inspectors and inspections. We also find large heterogeneity across signers and no evidence that the North American Free Trade Agreement (NAFTA) had a positive impact on Mexico. We conclude by suggesting that the stringency of content of the accord and the resources devoted by the U.S. government to increase enforcement make a difference.

Suggested Citation

  • Sabina Dewan & Lucas Ronconi, 2018. "U.S. Free Trade Agreements and Enforcement of Labor Law in Latin America," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 57(1), pages 35-56, January.
    • Handle: RePEc:bla:indres:v:57:y:2018:i:1:p:35-56
    DOI: 10.1111/irel.12199
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    References listed on IDEAS

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    1. Haroon BHORAT & Ravi KANBUR & Natasha MAYET, 2012. "Minimum wage violation in South Africa," International Labour Review, International Labour Organization, vol. 151(3), pages 277-287, September.
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    9. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    10. Liam CAMPLING & James HARRISON & Ben RICHARDSON & Adrian SMITH, 2016. "Can labour provisions work beyond the border? Evaluating the effects of EU free trade agreements," International Labour Review, International Labour Organization, vol. 155(3), pages 357-382, September.
    11. Rita Almeida & Lucas Ronconi, 2016. "Labor Inspections in the Developing World: Stylized Facts from the Enterprise Survey," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 55(3), pages 468-489, July.
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    Cited by:

    1. Céline Carrère & Marcelo Olarreaga & Damian Raess, 2022. "Labor clauses in trade agreements: Hidden protectionism?," The Review of International Organizations, Springer, vol. 17(3), pages 453-483, July.
    2. International Organisation, 2017. "Handbook on Assessment of Labour Provisons in Trade and Investment Arrangements," Working Papers id:11929, eSocialSciences.
    3. Robertson,Raymond, 2021. "Deep Integration in Trade Agreements : Labor Clauses, Tariffs, and Trade Flows," Policy Research Working Paper Series 9599, The World Bank.
    4. Ruiqi Yang & Han Luo, 2024. "Navigating the Evolution of Labor Provisions: Comparative Insights from China, the US, and the EU in Free Trade Agreements," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 11128-11160, September.
    5. Susan Ariel Aaronson, 2017. "Governance Spillovers of Labour Provisions in Free Trade Agreements," Working Papers 2017-2, The George Washington University, Institute for International Economic Policy.
    6. Jonas AISSI & Rafael PEELS & Daniel SAMAAN, 2018. "Evaluating the effectiveness of labour provisions in trade agreements: An analytical and methodological framework," International Labour Review, International Labour Organization, vol. 157(4), pages 671-698, December.

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    More about this item

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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