Abstract:
Over the last 25 years, the BRICs asserted themselves as drivers of globalization. But what does their new‐found prominence mean for working conditions at home? Using a novel sub‐national database covering outward investment linkages and working conditions in Brazilian municipalities, this study tests whether a direct investment in Europe leads to the introduction of decent working conditions in Brazil. The empirical results provide strong support for the investing‐up effect using a mixture of panel data analysis and text analysis. The results suggest that economic integration with high‐standard developed countries can act as a powerful mechanism for labor standard improvements in developing countries.