Options for Enforcing Labor Standards: Lessons from Bangladesh and Cambodia

Gunseli Berik () and Yana van der Meulen Rodgers

Working Paper Series, Department of Economics, University of Utah from University of Utah, Department of Economics

Abstract: This study examines labor standards enforcement and compliance in two Asian economies (Bangladesh and Cambodia) that have amongst the lowest labor costs in the world but are experiencing strong pressures to improve the price competitiveness of their textile and garment exports. Analysis of survey, focus group, and inspection data indicate differing trajectories in compliance with basic labor standards. While extremely low wages and poor working conditions have persisted in Bangladesh, compliance has begun to improve in Cambodia following a trade agreement with the United States that linked positive trade incentives with labor standards enforcement. These contrasting experiences suggest that in less developed countries governments consider trade-linked schemes to achieve improvements in working conditions without hindering export growth or job growth.

Keywords: Working conditions; enforcement; labor laws; female workers; gender and trade (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev and nep-lab
Date: 2008
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Persistent link: http://EconPapers.repec.org/RePEc:uta:papers:2008_14

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