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in the next section of this paper. In the third section we compare the wages at individual firms accused of being sweatshops with these same standard of living measures. Apparel Jobs Compared to Average Living Standards The apparel industry has drawn the most attention the press for its use of sweatshop labor.

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Krugman, Paul (1997) “In Praise of Cheap Labor, Bad Jobs at Bad Wages are Better Than No Jobs at All.” Slate. March 20. Lipsey, Robert and Sjoholm, Fredrik (2001) “Foreign Direct Investment and Wages in Indonesian Manufacturing.” NBER Working Paper 8299. Cambridge: National Bureau of Economic Research.

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NBER Program(s):International Finance and Macroeconomics Program This paper examines how devaluations affect the relative costs of labor and capital and therefore influence production, profitability, investment, and stock returns for firms in the 'crisis' country as well as competitors in the rest of the world.

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