Analyze immediate labor market outcomes for sweatshop worker


Problem

American students have organized opposition to the sale by their campus stores of university apparel made for American retailers by workers in foreign countries who work in sweatshop conditions (long hours at low pay in bad working conditions). Assume this movement takes the form of boycotting items made under sweatshop conditions.

Analyze the immediate labor market outcomes (i.e. effects on wages and employment) for sweatshop workers in these countries using demand and supply curves in (i) the university apparel market and (ii) the labor market for university apparel workers in foreign countries to illustrate the mechanisms driving the outcomes.

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Macroeconomics: Analyze immediate labor market outcomes for sweatshop worker
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