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This paper is designed to assess the empirical evidence on the effects of multinational production on wages and working conditions in developing countries. It is motivated by the controversies that have emerged, especially in the past decade or so, concerning whether or not multinational firms in developing countries are exploiting their workers with “sweatshop” conditions—that is, paying low wages and subjecting them to coercive, abusive, unhealthy, and unsafe conditions in the workplace. Thus, in section 8.2, we address these controversies in the context of the efforts and programs of social activist groups and universities and colleges involved in the antisweatshop campaign in the United States and the related issues of the social accountability of multinational firms and the role of such international institutions as the International Labor Organization (ILO) and World Trade Organization (WTO) in dealing with …