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4 - Don’t Cry for Me, Kathie Lee

How Sweatshop Wages Compare to Alternatives

Published online by Cambridge University Press:  05 June 2014

Benjamin Powell
Affiliation:
The Free Market Institute, Texas Tech University
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Summary

The national media spotlight focused on sweatshops in 1996 after Charles Kernaghan of the National Labor Committee accused Kathie Lee Gifford of exploiting children in Honduran sweatshops. He flew a fifteen-year-old worker, Wendy Diaz, to the United States to meet Kathie Lee. Kathie Lee exploded into tears and apologized on the air, promising to pay higher wages.

Should Kathie Lee have cried? Wendy reportedly earned 31 cents per hour. Assuming that Wendy worked six days per week for ten hours per day – which is not uncommon in a sweatshop – she would have earned $967.00 over the course of a year. That translates into approximately $2.75 per day to live on. But in 1996, more than 15 percent of Hondurans lived on less than $1.00 per day, and nearly 30 percent lived on less than $2.00 per day. Wendy’s income is not just higher than that of people in abject poverty; it is $262.00 above the average income in Honduras that year.

Type
Chapter
Information
Out of Poverty
Sweatshops in the Global Economy
, pp. 48 - 62
Publisher: Cambridge University Press
Print publication year: 2014

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References

Powell, Benjamin and Skarbek, David, “Sweatshop Wages and Third World Workers: Are the Jobs Worth the Sweat?Journal of Labor Research 27, No. 2 (2006)CrossRefGoogle Scholar
Keady, Jim, “When Will Nike ‘Just Do It’ on the Sweatshop Issue?” Huffington Post, October 2, 2009
Chang, Jack, “Bolivians Fail to Find Better Life in Brazil; Bolivians Are Migrating to Brazil in Search of a Better Life, but Many End Up Working under Harsh Conditions and Earning Low Pay,” Miami Herald, December 28, 2007
Whitehead, Jennifer, “Topshop Faces Accusations of Using Sweatshop Labour,” Brand Republic, August 14, 2007
Margolis, Mac, “Roads to Nowhere; More and More Migrants from Poor Countries Are Heading to Other Former Backwaters for Work,” Newsweek, September 11, 2006
Pierson, David, “An Influx of Illegal Workers; Sound Familiar? It’s Happening in China, Where the Pay Looks Good to Vietnamese,” Los Angeles Times, September 19, 2010
Bisseker, Claire, “Clothing Industry. Policy Doesn’t Fit Practice,” Financial Mail (South Africa), September 10, 2010Google Scholar

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