Working Paper: NBER ID: w15374
Authors: Michael Huberman; Christopher M. Meissner
Abstract: The received view pins the adoption of labor regulation before 1914 on domestic forces. Using directed dyad-year event history analysis, we find that trade was also a pathway of diffusion. Market access served as an important instrument to encourage a level playing field. The type of trade mattered as much as the volume. In the European core, states emulated the labor regulation of partners because intraindustry trade was important. The New World exported less differentiated products and pressures to imitate were weak.
Keywords: Labor Regulation; Trade; Globalization; Policy Diffusion
JEL Codes: J8; N3; N40
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| increased trade (F19) | higher labor standards (J89) |
| intra-industry trade (F14) | adoption of similar labor regulations (J89) |
| trade integration (F15) | likelihood of adopting similar labor standards (J89) |
| competitive pressures from trade (F19) | stricter labor standards (J89) |
| domestic factors (F55) | labor regulation adoption (J89) |