Working Conditions and Factory Survival: Evidence from Better Factories Cambodia

Raymond Robertson, Drusilla Brown () and Rajeev Dehejia

No 10026, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: A large and growing literature has identified several conditions, including exporting, that contribute to plant survival. A prevailing sentiment suggests that anti-sweatshop activity against plants in developing countries adds the risk of making survival more difficult by imposing external constraints that may interfere with optimizing behavior. Using a relatively new plant-level panel dataset from Cambodia, this paper applies survival analysis to estimate the relationship between changes in working conditions and plant closure. The results find little, if any, evidence that improving working conditions increases the probability of closure. In fact, some evidence suggests that improvements in standards relating to compensation are positively correlated with the probability of plant survival.

Keywords: plant survival; sweatshops; apparel; working conditions; closure (search for similar items in EconPapers)
JEL-codes: J3 J5 J8 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2016-06
New Economics Papers: this item is included in nep-dev, nep-lab and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published - published in: Reivew of Development Economics, 2021, 15 (1), 228 - 254

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Related works:
Journal Article: Working conditions and factory survival: Evidence from better factories Cambodia (2021)
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