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White Hats or Don Quixotes? Human Rights Vigilantes in the Global Economy

Author

Listed:
  • Kimberly Ann Elliott
  • Richard Freeman
Abstract
With the continuing expansion of global economic integration, labor standards in developing countries have become a hot button issue. One result has been a proliferation of efforts to use the market to put pressure directly on multinational corporations to improve wages and working conditions in their overseas operations and to insist that their suppliers do so as well. This paper analyzes the dynamics of these efforts in terms of a 'market for standards' in which consumers, stimulated by human rights activists, demand that corporations improve working conditions in supplier factories. The paper presents evidence that such a consumer demand exists and analyzes the incentives corporations face to respond to it. It examines the nature of the critical intermediary role played by activists in stimulating consumer demands and assesses the outcomes in the major anti-sweatshop campaigns of the 1990s. The paper also addresses the limitations of such consumer-based campaigns and the concern expressed by some that these activist campaigns may do more harm than good, by deterring investment in and trade with poor countries. It concludes with an overall assessment of when 'doing good' actually does good.

Suggested Citation

  • Kimberly Ann Elliott & Richard Freeman, 2001. "White Hats or Don Quixotes? Human Rights Vigilantes in the Global Economy," NBER Working Papers 8102, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:8102
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    References listed on IDEAS

    as
    1. Sabel, Charles & O'Rourke, Dara & Fung, Archon, 2000. "Ratcheting labor standards : regulation for continuous improvement in the global workplace," Social Protection Discussion Papers and Notes 23071, The World Bank.
    2. Kimberly Ann Elliott & Richard B. Freeman, 2003. "Can Labor Standards Improve under Globalization?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 338, April.
    3. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    4. Gary Clyde Hufbauer & Jeffrey J. Schott & Kimberly Ann Elliott, 2009. "Economic Sanctions Reconsidered, 3rd Edition (paper)," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4129, April.
    5. Richard B. Freeman, 1998. "Spurts in Union Growth: Defining Moments and Social Processes," NBER Chapters, in: The Defining Moment: The Great Depression and the American Economy in the Twentieth Century, pages 265-296, National Bureau of Economic Research, Inc.
    6. Freeman, Richard B, 1997. "Working for Nothing: The Supply of Volunteer Labor," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 140-166, January.
    7. repec:fth:michin:333 is not listed on IDEAS
    8. Michael D. Bordo & Claudia Goldin & Eugene N. White, 1998. "The Defining Moment: The Great Depression and the American Economy in the Twentieth Century," NBER Books, National Bureau of Economic Research, Inc, number bord98-1.
    9. Brown, D.K. & Dearorff, A.V. & Stern, R.M., 1993. "International Labor Standards and Trade: A Theoretical Analysis," Working Papers 333, Research Seminar in International Economics, University of Michigan.
    10. Gary Clyde Hufbauer & Jeffrey J. Schott & Kimberly Ann Elliott, 1990. "Economic Sanctions Reconsidered: 2nd Edition," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 82, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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