Comparative advantage, trade and labour standards

This paper empirically explores the relationship between labour standards and comparative advantage. Focusing on unskilled−labour−intensive goods and core labour standards, the results show that the effects of low standards depend on the type of standard: Weaker basic union rights are associated with a stronger comparative advantage. Forced and child labour also lead to an increase in the endowment of unskilled labour, and hence improve comparative advantage in unskilled−labour−intensive goods; the opposite occurs with discrimination against females