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Diffusion of labor standards from origin to host countries: Cross county evidence from multinational companies in Africa

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  • Merima Ali
  • Adnan Seric

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 don’t operate in isolation from external influences coming from origin countries.

Suggested Citation

  • Merima Ali & Adnan Seric, 2014. "Diffusion of labor standards from origin to host countries: Cross county evidence from multinational companies in Africa," RSCAS Working Papers 2014/22, European University Institute.
    • Handle: RePEc:rsc:rsceui:2014/22
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    References listed on IDEAS

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    More about this item

    Keywords

    : Labor standards; Multinational companies; origin country; host country; wages; Africa;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J80 - Labor and Demographic Economics - - Labor Standards - - - General

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