Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/145160 
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers No. 10026
Publisher: 
Institute for the Study of Labor (IZA), Bonn
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.
Subjects: 
working conditions
apparel
sweatshops
plant survival
closure
JEL: 
J8
J5
J3
Document Type: 
Working Paper

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