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Options for Enforcing Labor Standards: Lessons from Bangladesh and Cambodia

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  • Günseli Berik
  • Yana van der Meulen Rodgers

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.

Suggested Citation

  • Günseli Berik & Yana van der Meulen Rodgers, 2008. "Options for Enforcing Labor Standards: Lessons from Bangladesh and Cambodia," Working Paper Series, Department of Economics, University of Utah 2008_14, University of Utah, Department of Economics.
    • Handle: RePEc:uta:papers:2008_14
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    Cited by:

    1. Robertson, Raymond, 2019. "Working Conditions, Transparency, and Compliance in Global Value Chains: Evidence from Better Work Jordan," IZA Discussion Papers 12794, Institute of Labor Economics (IZA).
    2. Sandra Polaski, 2022. "The strategy and politics of linking trade and labor standards: an overview of issues and approaches," Chapters, in: Handbook on Globalisation and Labour Standards, chapter 11, pages 203-225, Edward Elgar Publishing.
    3. Muhammad Faisol Chowdhury & Tasnim Rezoana Tanim, 2016. "Industrial Accidents in Bangladesh Apparel Manufacturing Sector: An Analysis of the Two Most Deadliest Accidents In History," Asian Journal of Social Sciences and Management Studies, Asian Online Journal Publishing Group, vol. 3(2), pages 115-126.
    4. DiCaprio, Alisa, 2013. "The Demand Side of Social Protection: Lessons from Cambodia’s Labor Rights Experience," World Development, Elsevier, vol. 48(C), pages 108-119.
    5. Carlson, Laura A. & Bitsch, Vera, 2018. "Social sustainability in the ready-made-garment sector in Bangladesh: an institutional approach to supply chains," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(2), March.
    6. Raymond Robertson & Drusilla Brown & Rajeev Dehejia, 2021. "Working conditions and factory survival: Evidence from better factories Cambodia," Review of Development Economics, Wiley Blackwell, vol. 25(1), pages 228-254, February.
    7. Arif Mostafa Khan & Meine Pieter van Dijk, 2024. "The role of multi‐stakeholder initiatives in advancing circularity and social sustainability in the textiles sector of Bangladesh," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(3), pages 1765-1788, April.
    8. Ronconi, Lucas & Raphael, Steven, 2024. "Measuring Effective Labor Regulation in the Less Developed World: Recent Advances and Challenges Ahead," IZA Policy Papers 210, Institute of Labor Economics (IZA).
    9. Vivek Soundararajan & Jill A. Brown, 2016. "Voluntary Governance Mechanisms in Global Supply Chains: Beyond CSR to a Stakeholder Utility Perspective," Journal of Business Ethics, Springer, vol. 134(1), pages 83-102, March.
    10. Lisa Lechner, 2018. "Good for some, bad for others: US investors and non-trade issues in preferential trade agreements," The Review of International Organizations, Springer, vol. 13(2), pages 163-187, June.
    11. Arianna Rossi, 2015. "Better Work: harnessing incentives and influencing policy to strengthen labour standards compliance in global production networks," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(3), pages 505-520.
    12. Brown, Drusilla & Dehejia, Rajeev & Robertson, Raymond, 2016. "Laws, Costs, Norms, and Learning: Improving Working Conditions in Developing Countries," IZA Discussion Papers 10025, Institute of Labor Economics (IZA).
    13. Arianna Rossi, 2019. "Applying the GVC framework to policy: The ILO experience," Journal of International Business Policy, Palgrave Macmillan, vol. 2(3), pages 211-216, September.
    14. Chikako Oka, 2014. "Evaluating a Promising Model of Non-State Labor Regulation: The Case of Cambodia's Apparel Sector," Post-Print hal-03181247, HAL.
    15. Dagmara Nikulin & Joanna Wolszczak-Derlacz & Aleksandra Parteka, 2022. "Working Conditions in Global Value Chains: Evidence for European Employees," Work, Employment & Society, British Sociological Association, vol. 36(4), pages 701-721, August.
    16. Christoph Scherrer, 2017. "The development rationale for international labour rights," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 60(1), pages 81-91, March.
    17. Robertson, Raymond, 2023. "Labor compliance programs in developing countries and trade flows: Evidence from Better Work," Economics Letters, Elsevier, vol. 228(C).
    18. Rashedur Chowdhury, 2023. "Misrepresentation of Marginalized Groups: A Critique of Epistemic Neocolonialism," Journal of Business Ethics, Springer, vol. 186(3), pages 553-570, September.
    19. Raymond Robertson, 2022. "Pioneering a new approach to improving working conditions in developing countries: Better Factories Cambodia," Chapters, in: Handbook on Globalisation and Labour Standards, chapter 20, pages 359-381, Edward Elgar Publishing.
    20. Caixia Chen & Patsy Perry & Yixiong Yang & Cheng Yang, 2017. "Decent Work in the Chinese Apparel Industry: Comparative Analysis of Blue-Collar and White-Collar Garment Workers," Sustainability, MDPI, vol. 9(8), pages 1-19, August.
    21. Kanchana N. Ruwanpura, 2011. "Women workers in the apparel sector," Progress in Development Studies, , vol. 11(3), pages 197-209, July.
    22. Raymond Robertson, 2020. "Lights On: How Transparency Increases Compliance in Cambodian Global Value Chains," ILR Review, Cornell University, ILR School, vol. 73(4), pages 939-968, August.
    23. Hoang, Thi Minh Hang & Nguyen, Thi Lan & Nguyen, Hoang My Linh & Phung, Thi Yen & Tran, Thi Lien Huong, 2014. "Labour provisions in preferential trade agreements: potential opportunities or challenges to Vietnam?," Papers 917, World Trade Institute.
    24. Kevin Kolben, 2017. "A Supply Chain Approach to Trade and Labor Provisions," Politics and Governance, Cogitatio Press, vol. 5(4), pages 60-68.
    25. Lilac Nachum, 2021. "Value distribution and markets for social justice in global value chains: Interdependence relationships and government policy," Journal of International Business Policy, Palgrave Macmillan, vol. 4(4), pages 541-563, December.

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    Keywords

    Working conditions; enforcement; labor laws; female workers; gender and trade;
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