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U.S. Free Trade Agreements and Enforcement of Labor Law in Latin America
Author(s) -
Dewan Sabina,
Ronconi Lucas
Publication year - 2018
Publication title -
industrial relations: a journal of economy and society
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.61
H-Index - 57
eISSN - 1468-232X
pISSN - 0019-8676
DOI - 10.1111/irel.12199
Subject(s) - latin americans , free trade agreement , enforcement , free trade , government (linguistics) , law enforcement , economics , international trade , demographic economics , international economics , political science , law , linguistics , philosophy
The paper provides difference‐in‐differences estimates suggesting that Latin American countries that signed a free trade agreement with the United States experienced an increase in the number of labor inspectors and inspections. We also find large heterogeneity across signers and no evidence that the North American Free Trade Agreement ( NAFTA ) had a positive impact on Mexico. We conclude by suggesting that the stringency of content of the accord and the resources devoted by the U.S. government to increase enforcement make a difference.