Sweatshop Wages and Third-​World Workers: Are the Wages Worth the Sweat?

Benjamin Powell

Benjamin Powell is the director of the Free Market Institute at Texas Tech University and a professor of economics at the Rawls College of Business. Previously he was an associate professor of economics at Suffolk University and a senior economist at the Beacon Hill Institute. Powell’s research interests include public choice theory, housing economics, political development, and political economy. He holds a B.S. in finance and economics from the University of Massachusetts Lowell and a Ph.D in economics from George Mason University.

Prof. Ben Powell discusses the economics of sweatshops. He begins with a few photos and personal travel stories to demonstrate typical working conditions in third world countries. He then discusses the economic forces that determine working conditions and wages. Looking at empirical data, he finds that sweatshop workers earn higher wages than non-​sweatshop workers in their respective third world country. He concludes with recommendations to activists who want to actually help sweatshop workers.

Credits: This lecture was delivered in 2009 at the Metropolitan State College of Denver School of Business, as part of the Exploring Economic Freedom Lecture Series, directed by Prof. Alexandre Padilla. This video was produced and directed by Scott Houck, and edited by Adrienne Christy. Video production provided by the Educational Technology Center at Metropolitan State College of Denver.

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