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Sweatshop Labor

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Handbook of Labor, Human Resources and Population Economics

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Abstract

The sweatshop debate is contentious and enduring – some see salaried sweatshop jobs as the only chance out of poverty for the poorest. Others see abominable sweatshop conditions as human rights violations in which the poorest are prey. Despite these stark assessments, is it possible to organize notions of acceptable sweatshop jobs and isolate defining characteristics of sweatshop jobs of the worst forms that ought to be eliminated or at least regulated? This chapter examines the economics of sweatshop employment, covering measurement, theories, and policies. Drawing on recent research and observations from surveys and interviews on the ground, this chapter cautions against once-size-fits-all policies, and sheds light on three sweatshop preconditions as indicators of sweatshop jobs of the worst forms: (i) the lack of agency, (ii) middlemen market power, and (iii) job insecurity without compensation. This chapter discusses how these departures from the textbook competitive labor market gives rise to sweatshop jobs that should be reined in, for they are both exploitative of the poor and economically inefficient overall. Two important implications of these findings are discussed. First, measurement of sweatshop employment should embrace a balanced emphasis on both sweatshop symptoms, as well as sweatshop preconditions. Second, further research is warranted to uncover other relevant sweatshop preconditions, and the implications of the juxtaposition of multiple sweatshop preconditions in a single workplace.

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Authors and Affiliations

  1. Cornell University, Ithaca, NY, USA

    Nancy H. Chau

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  1. Nancy H. Chau
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Correspondence to Nancy H. Chau .

Editor information

Editors and Affiliations

  1. UNU-MERIT & Princeton University, Maastricht, The Netherlands

    Klaus F. Zimmermann

Section Editor information

  1. Faculty Of Economics And Administration, University of Malaya, Kuala Lumpur, Malaysia

    M. Niaz Asadullah

  2. Centre on Skills, Knowledge & Organisational Performance, University of Oxford, Oxford, UK

    M. Niaz Asadullah

  3. Dept of Economics, University of Reading, Reading, UK

    M. Niaz Asadullah

  4. School of Education, Environment and Development (SEED),, University of Manchester, Manchester, UK

    M. Niaz Asadullah

  5. IZA Institute of Labor Economics, Bonn, Germany

    M. Niaz Asadullah

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Chau, N.H. (2021). Sweatshop Labor. In: Zimmermann, K.F. (eds) Handbook of Labor, Human Resources and Population Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-57365-6_151-1

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  • DOI: https://doi.org/10.1007/978-3-319-57365-6_151-1

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  • Print ISBN: 978-3-319-57365-6

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