TY  - JOUR
AU  - Sinn,Hans-Werner
TI  - Social Dumping in the Transformation Process?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8364
PY  - 2001
Y2  - July 2001
UR  - http://www.nber.org/papers/w8364
L1  - http://www.nber.org/papers/w8364.pdf
N1  - Author contact info:
Hans-Werner Sinn
Ifo Institute -
Leibniz Institute for Economic Research
at University of Munich
Poschingerstr. 5
81679 Munich
GERMANY
Tel: 49-89-21802748
Fax: 49-89-397303;49-89-8506434 (home)
E-Mail: sinn@ifo.de
AB  - Business representatives and union leaders in highly industrialised countries often accuse the  governments of less-developed countries of practising social dumping in the sense of deliberately  neglecting  work-place safety legislation, co-determination rights and other fringe benefits which  define the quality of workplaces. This paper refutes this view by modelling the transition path of a  less-developed small open economy that faces transactions costs when trading capital and labour  with the rest of the world. It shows that competitive markets and competitive governments choose  Pareto efficient transition strategies which are characterised by a sluggish development of market wages and government-imposed social standards.
ER  -