About the research
We live in a globalised economy. We trade with, invest in, and move between countries across the globe with an ease and speed previously unseen in history. One of the unfortunate side effects of our demand for cheaper products from foreign countries is that in many developing countries working hours are much longer than in the West.
But does the fact we trade with India and import from China have an impact on the number of hours worked in certain businesses and industries in Europe? Does the migration of people have any effect? Are there ways of inhibiting the possible negative effects of all this?
Researchers from the University of Geneva and the University of Amsterdam have now investigated this problem looking at international macrodata for 18 European Union (EU) member states. They found that if a company is facing more trade and investment, their employees do not work longer week hours. However, if a company is in competition with imports or have more foreign-born workers, they do tend to have longer standard working hours than others. The researchers also discovered that the impact globalisation has on working hours can be restrained by the presence of collective bargaining in these industries.
The results also suggest that immigration poses the greatest risk toward European working hours in the globalised economy and that it is possible that hostility toward migrant workers by native populations may stem from their impact on the labour market as a result of their presence.
Methodology
The researchers conducted a quantitative analysis by estimating ordinary least squares (OLS) and instrumental variables (IV) models for standard linear regressions to ascertain causal relationships.
Variables were extracted from the survey’s questions with the answer to the standard weekly hours question being the dependent variable and several control variables taken from other questions.
The OECD datasets were used to extract suitable globalisation variables.
Publications
Burgoon, B. and Raess, D. (2011) ‘Does the global economy mean more sweat? Trade, investment, migration and working hours in Europe’, Socio-Economic Review, 9(4), pp. 699-727. doi: 10.1093.ser/mwr007