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    Higher Wages for Sustainable Development? Employment and Carbon Effects of Paying a Living Wage in Global Apparel Supply Chains

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    Publication date
    2019-05
    Author
    Mair, Simon
    Druckman, A.
    Jackson, T.
    Keyword
    Wages
    Sustainable development
    Employment
    Living wage
    Carbon emissions
    Clothing industry
    Supply chain
    Rights
    (c) 2019 The Authors. This is an Open Access article distributed under the Creative Commons CC-BY license (http://creativecommons.org/licenses/BY/4.0/)
    Peer-Reviewed
    Yes
    
    Metadata
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    Abstract
    In this paper we explore how paying a living wage in global supply chains might affect employment and carbon emissions: Sustainable Development Goals 8 and 13. Previous work has advocated using wage increases for poorer workers to increase prices for wealthier consumers, thereby reducing consumption and associated environmental damage. However, the likely effects of such an approach remain unclear. Using an input-output framework extended with income and demand elasticities, we estimate the employment and carbon effects of paying a living wage to Brazilian, Russian, Indian and Chinese (BRIC) workers in the Western European clothing supply chain. We find negligible effects on carbon emissions but a substantial increase in BRIC employment under 3 scenarios of consumer behaviour. Changes in Western European consumption lead to small decreases in global carbon emissions and BRIC employment. However, the increase in BRIC wages increases demand in BRIC. This increased demand increases production which largely cancels out the carbon savings and generates net increases in BRIC employment. We conclude by arguing that paying higher wages in global supply chains represents a good but not sufficient step toward achieving the Sustainable Development Goals.
    URI
    http://hdl.handle.net/10454/18252
    Version
    Published version
    Citation
    Mair S, Druckman A and Jackson T (2019) Higher Wages for Sustainable Development? Employment and Carbon Effects of Paying a Living Wage in Global Apparel Supply Chains. Ecological Economics. 159: 11-23.
    Link to publisher’s version
    https://doi.org/10.1016/j.ecolecon.2019.01.007
    Type
    Article
    Collections
    Management and Law Publications

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