Working conditions and factory survival: Evidence from better factories Cambodia Academic Article uri icon

abstract

  • AbstractA large and growing literature has identified several conditions, including exporting, that contribute to plant survival. A prevailing sentiment suggests that antisweatshop activity against plants in developing countries adds to the risk of closure, making survival more difficult by imposing external constraints that may interfere with optimizing behavior. Using a relatively new plantlevel panel data set 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.

published proceedings

  • REVIEW OF DEVELOPMENT ECONOMICS

altmetric score

  • 3

author list (cited authors)

  • Robertson, R., Brown, D., & Dehejia, R.

citation count

  • 6

complete list of authors

  • Robertson, Raymond||Brown, Drusilla||Dehejia, Rajeev

publication date

  • February 2021

publisher