|Title||Rewards of (Dis)Integration: Economic, Social, and Political Globalization and Freedom of Association and Collective Bargaining Rights of Workers in Developing Countries|
|Publication Type||Journal Article|
|Year of Publication||2014|
|Authors||Vadlamannati, Krishna Chaitanya|
|Volume||Oct 24, 2014|
|Keywords||collective bargaining, developing countries, endogeneity, FACB rights, free association and collective bargaining rights, globalization, workers’ rights|
A much-debated issue regarding globalization is whether it translates into Free Association and Collective Bargaining (FACB) rights for workers. The author uses Dreher’s (2006) globalization index, which gauges globalization on economic, social, and political dimensions, and Mosley’s (2011) FACB rights index, which measures 37 aspects of both practices and laws violations of FACB rights, to examine the impact of globalization on FACB rights of workers. Using panel data for 142 developing countries during the 1985–2002 period, the author finds mixed evidence of the impact of globalization on FACB rights, controlling for a host of relevant factors, including endogeneity concerns using a System-GMM approach. While social globalization is associated with both strengthening laws and enforcing the laws to protect FACB rights, this is not the case for political globalization. In addition, the positive effect of economic globalization on FACB rights is sensitive to estimation specifications.