Racing to the Bottom? The Link between Exporting Behaviour and Worker Job Satisfaction
Published: 16 November 2017
Abstract: Using firm-level data from the World Bank’s Enterprise Surveys, this paper investigates whether there exists a significant relationship between the exporting status of a firm and the likelihood of its workers leaving the job, after controlling for a number of firm and industry characteristics. We also examine the connection between the fraction of sales exported and the number of production days lost due to worker strikes. Our main conclusion is that exports affect the number of employees leaving due to illness (or for other reasons) positively and significantly. By utilizing several enforcement measures, such as inspections by fire and building safety officials, this paper illustrates that the argument for “race to the bottom” in labour standards as a result of trade liberalization deserves greater consideration in regional, multilateral and bilateral trade agreements.Keywords: Labour standards, International trade, Regulations, Enforcement.