Library Header Image
LSE Research Online LSE Library Services

Labor costs and the social dumping debate in the European Union

Erickson, Christopher and Kuruvilla, Sarosh (1994) Labor costs and the social dumping debate in the European Union. Industrial and Labor Relations Review, 48 (1). pp. 28-47. ISSN 0019-7939

Full text not available from this repository.
Identification Number: 10.1177/001979399404800103


This study examines the labor cost incentive for capital movement in manufacturing within the European Union, a key aspect of the “social dumping” debate in Western Europe. The authors find that the percentage differences in unit labor costs between the more developed and less developed countries in the Union not only were large in 1980 but actually grew between 1980 and 1986, and separate estimates of compensation and productivity growth rates do not indicate that significant convergence occurred over the remainder of the 1980s. Although these findings apparently confirm that a labor cost incentive for capital mobility does exist, analysis of foreign direct investment data indicates that during the period 1980–88 capital flows to the lower labor cost countries actually were not much larger than capital flows to the higher labor cost countries.

Item Type: Article
Official URL:
Additional Information: © 1994 by Cornell University
Divisions: Management
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Date Deposited: 16 May 2018 13:53
Last Modified: 16 May 2024 23:10

Actions (login required)

View Item View Item