Nicholas R. Lardy asks, Testimony: Do China's Abusive Labor Practices Encourage Outsourcing and Drive Down American Wages?, and answers with a resounding NO:

• The estimate that if China were to end its persistent repression of workers' rights then the average wage would rise by 90 to 595 percent is based on a series of poorly supported assumptions.


• Labor productivity in China is too low to support the postulated wage increase. The estimated wage increase would lead to the bankruptcy of most firms.


• Despite assertions that wages have fallen since 1993, in real terms, wages have actually increased by at least 45%.


• Contrary to the contention that China's comparative advantage arises from the denial of workers' rights, which in turn provides China with an unfair cost advantage, foreign affiliates pay the highest wages in China and have better health, safety, and environmental standards than Chinese-owned firms, yet these foreign affiliates have enjoyed the greatest success in contributing to China's export performance.


• China has become far and away the fastest growing among the large export markets of US firms, contributing to US manufacturing jobs.

(via Daniel Drezner)