Labour provisions in FTAs initiating labour law reforms: examples from Vietnam and Malyasia
The effect of trade on labour markets has always been the source of much debate among economists and policy-makers. Empirical studies on the subject have produced mixed results, with some associating trade with increased informalisation of employment and greater wage inequality while others suggest that trade leads to reduced informality and promotes better working conditions. According to the World Employment and Social Outlook 2015, although trade usually generates economic benefits for firms, these do not always translate into better wages for workers. Some critics also claim that working ...