Social dumping

“Social dumping” is a term that is used to describe a practice of employers to use cheaper labour, than is usually available at their site of production and/or selling. It could be done by two basic ways:

• Migrant workers are employed taking profit of the globalization free movement agreements.
• Production is moved to a low-wage country or area, taking profit of the globalization free commercial agreements.

While it happens some states are in a dumping-like game where the Nash-equilibrium is less environmental protection, labor protection in order to compensate the losses of having the production in a high-wage region.

See also

Game Theory, Race to the bottom, Public goods game, Prisoner’s dilemma, Price dumping, Fiscal dumping, Paradox of competition

Material

• http://www.collinsdictionary.com/dictionary/english/social-dumping
• http://europa.eu/rapid/press-release_MEMO-14-344_en.htm
• http://www.stopsocialdumping.eu/

Papers

• Alber, J., & Standing, G. (2000). Social dumping, catch-up or convergence? Europe in a comparative global context. Journal of European Social Policy, 10(2), 99-119.
• Guillén, A. M., & Matsaganis, M. (2000). Testing the’social dumping’hypothesis in Southern Europe: welfare policies in Greece and Spain during the last 20 years. Journal of European Social Policy, 10(2), 120-145.
• Barnard, C. (2000). Social dumping and the race to the bottom: Some lessons for the European Union from Delaware?. European Law Review, (1), 57-78.
• Ericksno, C. L., & Kuruvilla, S. (1994). Labor costs and the social dumping debate in the European Union. Industrial & Labor Relations Review, 48(1), 28-47.
• Cordella, Tito; Grilo, Isabel (2001). Social dumping and relocation: is there a case for imposing a social clause?, Regional Science and Urban Economics, Volume 31, Issue 6, 643-668.

Books

• Bernaciak, Magdalena (2015). Market Expansion and Social Dumping in Europe. Routledge
• Rigaux, Marc; Buelens, Jan; Latinne, Amanda (2014). From Labour Law to Social Competition Law?. Intersentia