Reinforcing the State: Transnational and State Labor Regulation in Indonesia

Research on global programs to regulate labor standards has emphasized interactions between transnational and state regulatory institutions. If transnational initiatives can make state institutions more relevant, they have the potential to reinforce, rather than displace, state labor regulation. Thr...

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Main Authors: Amengual, Matthew, Chirot, Laura Helene
Other Authors: Massachusetts Institute of Technology. Department of Political Science
Format: Article
Language:en_US
Published: Sage Publications 2017
Online Access:http://hdl.handle.net/1721.1/107658
https://orcid.org/0000-0001-6024-1920
https://orcid.org/0000-0002-1371-0592
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author Amengual, Matthew
Chirot, Laura Helene
author2 Massachusetts Institute of Technology. Department of Political Science
author_facet Massachusetts Institute of Technology. Department of Political Science
Amengual, Matthew
Chirot, Laura Helene
author_sort Amengual, Matthew
collection MIT
description Research on global programs to regulate labor standards has emphasized interactions between transnational and state regulatory institutions. If transnational initiatives can make state institutions more relevant, they have the potential to reinforce, rather than displace, state labor regulation. Through a study of the Indonesia-based program of a leading initiative to improve working conditions in the garment industry, Better Work, this article identifies the conditions under which transnational regulations reinforce domestic ones. Drawing on two case studies comparing regulations governing fixed-term contracts and minimum wage renegotiations in four Indonesian districts, the authors find that reinforcement is likely when two conditions jointly occur: unions mobilize to activate state institutions, and transnational regulators have support to resolve ambiguities in formal rules in ways that require firms to engage with constraining institutions. The authors further test the findings through a quantitative analysis of factory participation in state-supervised wage renegotiations. The findings reveal opportunities and constraints to designing global programs that can both improve factory-level standards and support the functioning of state labor market institutions.
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spelling mit-1721.1/1076582022-09-27T14:52:27Z Reinforcing the State: Transnational and State Labor Regulation in Indonesia Amengual, Matthew Chirot, Laura Helene Massachusetts Institute of Technology. Department of Political Science Sloan School of Management Amengual, Matthew Amengual, Matthew Chirot, Laura Helene Research on global programs to regulate labor standards has emphasized interactions between transnational and state regulatory institutions. If transnational initiatives can make state institutions more relevant, they have the potential to reinforce, rather than displace, state labor regulation. Through a study of the Indonesia-based program of a leading initiative to improve working conditions in the garment industry, Better Work, this article identifies the conditions under which transnational regulations reinforce domestic ones. Drawing on two case studies comparing regulations governing fixed-term contracts and minimum wage renegotiations in four Indonesian districts, the authors find that reinforcement is likely when two conditions jointly occur: unions mobilize to activate state institutions, and transnational regulators have support to resolve ambiguities in formal rules in ways that require firms to engage with constraining institutions. The authors further test the findings through a quantitative analysis of factory participation in state-supervised wage renegotiations. The findings reveal opportunities and constraints to designing global programs that can both improve factory-level standards and support the functioning of state labor market institutions. Sloan School of Management International Labour Organization National Science Foundation (U.S.). Graduate Research Fellowship Program (Grant 1122374) 2017-03-22T20:21:19Z 2017-03-22T20:21:19Z 2016-06 2016-03 Article http://purl.org/eprint/type/JournalArticle 0019-7939 2162-271X http://hdl.handle.net/1721.1/107658 Amengual, Matthew, and Laura Chirot. “Reinforcing the State: Transnational and State Labor Regulation in Indonesia.” ILR Review 69.5 (2016): 1056–1080. https://orcid.org/0000-0001-6024-1920 https://orcid.org/0000-0002-1371-0592 en_US http://dx.doi.org/10.1177/0019793916654927 ILR Review Creative Commons Attribution-Noncommercial-Share Alike http://creativecommons.org/licenses/by-nc-sa/4.0/ application/pdf Sage Publications Amengual
spellingShingle Amengual, Matthew
Chirot, Laura Helene
Reinforcing the State: Transnational and State Labor Regulation in Indonesia
title Reinforcing the State: Transnational and State Labor Regulation in Indonesia
title_full Reinforcing the State: Transnational and State Labor Regulation in Indonesia
title_fullStr Reinforcing the State: Transnational and State Labor Regulation in Indonesia
title_full_unstemmed Reinforcing the State: Transnational and State Labor Regulation in Indonesia
title_short Reinforcing the State: Transnational and State Labor Regulation in Indonesia
title_sort reinforcing the state transnational and state labor regulation in indonesia
url http://hdl.handle.net/1721.1/107658
https://orcid.org/0000-0001-6024-1920
https://orcid.org/0000-0002-1371-0592
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