Monterey Institute of International Studies

MIIS Professor’s Article Convinces Financial Times Columnist to Rethink Economics of Sweatshops

May 13, 2010 - 12:00am

In a May 8 Financial Times column “Why anti-sweatshop campaigns might do it after all,” columnist Tim Harford announces that he has been forced to rethink his assumptions about the effects of anti-sweatshop campaigns. Harford cites a recently published article in the academic journal The American Economic Review by Monterey Institute Professor Jason Scorse and Berkeley Professor Ann Harrison, “Multinationals and Sweat-Shop Activism,” which examines what happened in Indonesia in the 1990s after an international anti-sweatshop campaign forced multinational corporations to improve workers’ wages at apparel and footwear factories. Professors Scorse and Harrison seek to dispel the economic theory that suggests that wage increases among sweatshop workers leads to factory closings and job loss.

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