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Anti-sweatshop activism and the safety-employment tradeoff: Evidence from Bangladesh's Rana Plaza disaster

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  • Grier, Kevin
  • Mahmood, Towhid
  • Powell, Benjamin

Abstract

This study investigates the impact of anti-sweatshop activism on garment industry employment and the number of firms in Bangladesh following the 2013 Rana Plaza factory disaster. The disaster led to activism that created two major brand-enforced factory fire and safety agreements. We employ a synthetic control methodology to investigate the tradeoffs associated with the reaction to the disaster and find that it led to 33.3 percent fewer garment factories in Bangladesh by 2016 and 28.3 percent fewer people employed in Bangladesh's garment industry by 2017. Given the importance of the garment industry in Bangladesh's development in providing a pathway out of extreme property, our finding raises important questions about the efficacy of anti-sweatshop activism.

Suggested Citation

  • Grier, Kevin & Mahmood, Towhid & Powell, Benjamin, 2023. "Anti-sweatshop activism and the safety-employment tradeoff: Evidence from Bangladesh's Rana Plaza disaster," Journal of Economic Behavior & Organization, Elsevier, vol. 208(C), pages 174-190.
    • Handle: RePEc:eee:jeborg:v:208:y:2023:i:c:p:174-190
    DOI: 10.1016/j.jebo.2023.02.007
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    More about this item

    Keywords

    Sweatshop; Rana Plaza; Bangladesh; Garment Industry; Synthetic control;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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