Hostname: page-component-78c5997874-4rdpn Total loading time: 0 Render date: 2024-11-13T03:28:13.077Z Has data issue: false hasContentIssue false

Sweatshops: Kant and Consequences

Published online by Cambridge University Press:  23 January 2015

Abstract:

Arnold and Bowie (2003) attempt to derive ethical constraints on the actions of the managers of multinational enterprises (MNEs), or the MNEs themselves, from a Kantian perspective. We contest Arnold and Bowie's claims regarding MNE duties, in particular that MNEs have a duty to pay a subsistence wage above market levels. We conclude that even within Arnold and Bowie's Kantian framework such a duty does not properly emerge. In addition, we argue that the account of coercion used by Arnold and Bowie does not serve their purposes. Arnold and Bowie address consequentialist issues by arguing that their conclusions are not undercut by economic considerations regarding unemployment. We argue that Arnold and Bowie have misread the economic literature in this regard.

Type
Articles
Copyright
Copyright © Business Ethics Quarterly 2007

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

American Law Institute. 1958. Restatement of Agency (2d). St. Paul, MN: American Law Institute Publishers.Google Scholar
Arnold, D. G., & Bowie, N. E. 2003. Sweatshops and respect for persons. Business Ethics Quarterly, 13: 221–42.Google Scholar
Baker, M., Benjamin, D., & Stranger, S. 1999. The highs and lows of the minimum wage effect: A time-series cross-section study of the Canadian law. Journal of Labor Economics, 17 (2): 318–50.Google Scholar
Bellante, D., & Picone, G. 1999. Fast food and unnatural experiments: Another perspective on the New Jersey minimum wage. Journal of Labor Research, 20 (4): 463–77.Google Scholar
Bliss, C., & Stern, N. H. 1978. Productivity, wages and nutrition, parts i and ii. Journal of Development Economics, 5: 331–98.Google Scholar
Borjas, G. J. 2005. Labor economics. New York: McGraw-Hill.Google Scholar
Bowie, N. E. 1999. Business ethics: A Kantian perspective. Oxford: Blackwell Publishers Inc.Google Scholar
Brown, D. K., Deardorff, A. V., & Stern, R. M. 2004. The effects of multinational production on wages and working conditions in developing countries. In Baldwin, R. E. & Winters, L. A. (Eds.), Challenges to globalization: Analyzing the economics. Chicago: The University of Chicago Press.Google Scholar
Burkhauser, R. V., Couch, K. A., & Wittenburg, D. C. 2000a. A reassessment of the new economics of the minimum wage literature with monthly data from the current population survey. Journal of Labor Economics, 18 (4): 653701.Google Scholar
Burkhauser, R. V., Couch, K. A., & Wittenburg, D. C. 2000b. Who minimum wage increases bite: an analysis using monthly data from the sipp and the cps. Southern Economic Journal, 67 (1): 1640.Google Scholar
CampbellC. M., III. C. M., III. 1993. Pay efficiency wages? Evidence with data at the firm level. Journal of Labor Economics, 11 (3): 442–70.Google Scholar
Cappelli, P., & Chauvin, K. 1991. An interplant test of the efficiency wage hypothesis. The Quarterly Journal of Economics, 106 (3): 769–87.CrossRefGoogle Scholar
Card, D., & Krueger, A. B. 1994. Minimum wages and employment: A case study of the fast-food industry in New Jersey and Pennsylvania. The American Review, 84 (4): 772–93.Google Scholar
Card, D., & Krueger, A. B. 1995. Myth and measurement: The economics of the minimum wage. Princeton, NJ: Princeton University Press.Google Scholar
Castillo-Freeman, A. J., & Freeman, R. B. 1992. When the minimum wage really bites: The effect of the U.S.-level minimum wage on Puerto Rico. In Borjas, G. J. & Freeman, R. B. (Eds.), Immigration and the workforce: Economic consequences for the United States and source areas: 177211. Chicago: University of Chicago Press.Google Scholar
Ehrenberg, R. G., & Smith, R. S. 2003. Labor economics: Theory and public policy (8th ed.). Boston: Addison Wesley, Inc.Google Scholar
Freeman, R. B. 1997. Honor of David Card: Winner of the John Bates Clark medal. Journal of Economic Perspectives, 11 (2): 161–78.Google Scholar
Gera, S., & Grenier, G. 1994. Interindustry wage differentials and efficiency wages: Some Canadian evidence. Canadian Journal of Economics, 27 (1): 81100.Google Scholar
Gifis, S. H. 1984. Law dictionary (2nd ed.). New York: Barron's Educational Series.Google Scholar
Hayek, F. A. 1945. The use of knowledge in society. The American Economic Review, 35 (4).Google Scholar
Hill, T. E. Jr., 1992. Dignity and practical reasoning in Kant's moral theory. Ithaca, NY: Cornell University Press.Google Scholar
Huang, T.-L., Hallam, A., Orazem, P. F., & Paterno, E. M. 1998. Empirical tests of efficiency wage models. Economica, 65: 125–43.Google Scholar
Kant, I. 1964. The metaphysical principles of virtue (Ellington, J., Trans.). Indianapolis: The Bobbs-Merrill Company, Inc.Google Scholar
Kant, I. 1997. Groundwork of the metaphysics of morals (Gregor, M., Trans.). Cambridge: Cambridge University Press.Google Scholar
Katz, L. F., & Krueger, A. B. 1992. The effects of the minimum wage on the fast-food industry. Industrial and Labour Relations Review, 46 (1): 621.Google Scholar
Keane, M. P. 1993. Individual heterogeneity and interindustry wage differentials. Journal of Human Resources, 28 (1): 134–61.Google Scholar
Korsgaard, C. M. 1996. Creating the kingdom of ends. Cambridge: Cambridge University Press.Google Scholar
Krueger, A. B. 1991. Ownership, agency, and wages: An examination of franchising in the fast food industry. The Quarterly Journal of Economics, 106 (1): 75101.Google Scholar
Leonard, J. S. 1987. Carrots and Sticks: Pay, supervision and turnover. Journal of Labor Economics, 5 (4): S136S151.Google Scholar
Maitland, I. 2001. The great non-debate over international sweatshops. In Beau-champ, T. L., & Bowie, N. E. (Eds.), Ethical theory and business, 6th ed. Englewood Cliffs, NJ: Prentice Hall.Google Scholar
Maloney, W. F., & Mendez, J. N. 2003. Measuring the impact of minimum wages: Evidence from Latin America, NBER Working Papers 9800: National Bureau of Economic Research.Google Scholar
Michl, T. 2000. Can rescheduling explain the New Jersey minimum wage studies? Eastern Economic Journal, 26 (3): 265–76.Google Scholar
Neumark, D., & Wascher, W. 1995. Minimum wage effects on school and work transitions of teenagers. American Economic Review, 85 (2): 244–49.Google Scholar
Neumark, D., & Wascher, W. 2004. Minimum wages, labor market institutions, and youth employment: A cross-national analysis. Industrial and Labor Relations Review, 57 (2): 223–48.Google Scholar
Partridge, M. D., & Partridge, J. S. 1999a. Do minimum wage hikes raise US long term unemployment? Evidence using state minimum wage rates. Regional Studies, 33 (8): 713–26.CrossRefGoogle Scholar
Partridge, M. D., & Partridge, J. S. 1999b. Do minimum wage hikes reduce employment? State-level evidence from the low-wage retail sector. Journal of Labor Research, 20 (3): 393414.Google Scholar
Republic of El Salvador. 2000. Monitoring report on maguilas and bonded areas: Ministry of Labor, Monitoring and Labor Relations Unit.Google Scholar
Ressler, R. W., Watson, J. K., & Mixon, F. 1996. Full wages, part-time employment, and the minimum wage. Applied Economics, 28 (11): 1415–19.Google Scholar
Santoro, M. A. 2000. Profits and Principles: Global capitalism and human rights in China. Ithaca, NY: Cornell University Press.CrossRefGoogle Scholar
Spriggs, W., & Schmitt, J. 1996. The minimum wage. In Schafer, T. & Faux, J. (Eds.), Reclaiming Prosperity: A blueprint for progressive economic reform: 166–73. Armonk, NY: M. E. Sharpe.Google Scholar
Strauss, J., & Thomas, D. 1998. Health, nutrition, and economic development. Journal of Economic Literature, 36 (2): 766817.Google Scholar
Walsh, F. 1999. A multisector model of efficiency wages. Journal of Labor Economics, 17 (2): 351–75.CrossRefGoogle Scholar
Zavodny, M. 2000. Effect of the minimum wage on employment and hours. Labour Economics, 7 (6): 729–50.CrossRefGoogle Scholar