Abstract
One of the more vexing dilemmas in the area of labour standards and well-being is the frequent disconnect between legislated standards and actual working conditions. The standard economic model for thinking about enforcement (Chapter 6, this volume) posits that the plant manager (the ‘employer’ in Willborn’s terminology) will comply with legal standards as long as the probability p, of enforcement times the damages if caught, D, is greater than the expected cost savings of non-compliance (equal to (1 —p) times C). As Willborn points out, the model is elegant in its simplicity but fraught with complication in application due to uncertainty about the values of all of the variables in the manager’s calculation.
The authors thank participants at the 2011 Regulating for Decent Work conference in Geneva, Colin Fenwick, Debra Ang, Jennifer Bair, Chika Oka, Amy Luinstra, Doug Miller, Arianna Rossi, Cael Warren, Sarah West and participants at seminars at the International Labor Affairs Bureau (ILAB) of the Department of Labor. The opinions expressed herein do not necessarily reflect those of the institutions the authors represent.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Similar content being viewed by others
References
Asuyama, Y.; Chhun, D.; Fukunishi, T; Neou, S.; Yamagata, T. 2010. ‘Firm dynamics in the Cambodian garment industry: firm turnover, productivity growth, and wage profile under trade liberalization’, Institute for Developing Economies Discussion Paper 268, December (Chiba: Institute for Developing Economies). https://ir.ide.go.jp/dspace/bitstream/2344/930/l/ARRIDE_Discussion_No.268_asuyama.pdf (accessed 15 June, 2013).
Beresford, M. 2009. ‘The Cambodian clothing industry in the post-MFA environment: A review of developments’, Journal of the Asia Pacific Economy, vol. 14, no. 4, pp. 366–88.
Berik, G.; van der Meulen Rodgers, Y. 2010. ‘Options for enforcing labour standards: Lessons from Bangladesh and Cambodia’, Journal of International Development, vol. 22, pp. 56–85.
Brown, D.; Dehejia, R.; Robertson, R. 2011a. ‘Vietnam baseline data report’, Mimeo, Tufts University, 25 July.
Brown, D.; Dehejia, R.; Robertson, R. 2011b. ‘Two steps forward, one step back? Evidence from Better Factories Cambodia’, Mimeo, Macalester College.
Brown, D.; Dehejia, R.; Robertson, R. 2011c. ‘Is there a business case for improving labor standards? Some evidence from Better Factories Cambodia’, Mimeo, Macalester College.
Brown, D.; Dehejia, R.; Robertson, R. 2011d. ‘Working conditions and factory survival: Evidence from Better Factories Cambodia’, Mimeo, Macalester College.
Elliott, K.A.; Freeman, R.B. 2003. Can Labor Standards Improve under Globalization? (Washington, DC: Institute for International Economics).
Harrison, A.E.; Scorse, J. 2010. ‘Multinationals and anti-sweatshop activism’, American Economic Review, vol. 100, no. 1, pp. 247–73.
Ichniowski, C.; Shaw, K.; Prennushi, G. 1997. ‘The effects of human resource management practices on productivity: A study of steel finishing lines’, American Economic Review, vol. 87, no. 3, pp. 291–313.
Kolbin, K. 2004. ‘Trade, monitoring, and the ILO: Working to improve conditions in Cambodia’s garment factories’, Yale Human Rights and Development Journal, vol. 7, pp. 79–107.
Miller, D.; Nuon, V.; Aprill, C; Certeza, R. 2009. ‘Business as usual? Governing the supply chain in clothing — post-MFA phase-out: The case of Cambodia’, International Journal of Labour Research, vol. 1, no. 1, pp. 10–33.
Oka, C. 2010a. ‘Accounting for the gaps in labour standard compliance: The role of reputation-conscious buyers in the Cambodian garment industry’, European Journal of Development Research, vol. 22, no. 1, pp. 59–78.
Oka, C. 2010b. ‘Channels of buyer influence and labor standard compliance: The case of Cambodia’s garment sector’, Advances in Industrial and Labor Relations, vol. 17, pp. 153–83.
Polaski, S. 2004. ‘Cambodia blazes a new path to economic growth and job creation’, Carnegie Paper No. 51, October (Washington, DC: Carnegie Endowment for International Peace).
Polaski, S. 2006. ‘Combining global and local forces: The case of labor rights in Cambodia’, World Development, vol. 34, no. 5, pp. 919–32.
Powell, B.; Skarbek, D. 2006. ‘Sweatshop wages and third world living standards: Are the jobs worth the sweat?’, Journal of Labor Research, vol. 27, no. 2, pp. 263–74.
Robertson, R.; Brown, D.; Gaëlle, P.; Sanchez-Puerta, L. (eds) 2009. Globalization, Wages, and the Quality of Jobs Five Country Studies (Washington, DC: World Bank).
Robertson, R.; Dehejia, R.; Brown, D.; Ang, D. 2011. ‘Labor law compliance and human resource management innovation: Better Factories Cambodia’, Better Work Discussion Paper No. 1 (Geneva: ILO).
Rossi, A.; Robertson, R. 2011. ‘Better Factories Cambodia: An instrument for improving industrial relations in a transnational context’, in Papadakis, K. (ed.), Shaping Global Industrial Relations: The Impact of International Framework Agreements (Basingstoke and Geneva: Palgrave Macmillan and ILO).
Shea, A.; Nakayama, M.; Heymann, J. 2010. ‘Improving labor standards in clothing factories’, Global Social Policy, vol. 10, no. 1, pp. 85–110.
Sothanarith, K. 2011. ‘Council approves wage bumps for factory workers’, VOANews.com, 7 March, http://www.vomews.com/khmer-english/news/Council-Approves-Wage-Bumps-for-Factory-Workers-117513018.html (accessed 15 May, 2013).
Warren, C.; Robertson, R. 2010. ‘Globalization, wages, and working conditions: A case study of Cambodian garment factories’, Mimeo, Macalester College.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Copyright information
© 2014 International Labour Organization
About this chapter
Cite this chapter
Brown, D., Dehejia, R., Robertson, R. (2014). Regulations, Monitoring and Working Conditions: Evidence from Better Factories Cambodia and Better Work Vietnam. In: McCann, D., Lee, S., Belser, P., Fenwick, C., Howe, J., Luebker, M. (eds) Creative Labour Regulation. Advances in Labour Studies. Palgrave Macmillan, London. https://doi.org/10.1057/9781137382214_7
Download citation
DOI: https://doi.org/10.1057/9781137382214_7
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-47994-8
Online ISBN: 978-1-137-38221-4
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)