Core Labor Standards and Development: Impact on Long-Term Income

SummaryThe paper focuses on the impact of international core labor standards on long-term per capita income. In order to do that, it is necessary to build a new synthetic indicator of labor standards using multiple correspondence analysis, measuring the four core labor standards recognized by ILO. We propose an estimation of the steady-state per capita income for a large panel of countries (104) and then that of developing countries. The two-stage least square method is used to correct potential problems of endogeneity. The findings show that, by and large, countries with higher labor standards have a higher steady-state level.