Addressing Workers' Rights in the Textile and Apparel Industries: Consequences for the Bangladesh Economy
Summary This paper applies a CGE model to analyze the effects of better addressing worker's rights in Bangladesh's textile and apparel industries. Results show that an increased minimum wage for unskilled, low-, and medium-skilled workers has negative impacts for these workers in aggregate and also for the economy in terms of export, GDP, and welfare. This comes from the decrease in employment. However, labor productivity-increasing improvements in factory conditions and services to workers not only increase incomes of workers, but also welfare. Entrepreneurs also enjoy higher incomes, enabling them to pay for improving the work environment.
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- Montfort Mlachila & Yongzheng Yang, 2004. "The End of Textiles Quotas; A Case Study of the Impacton Bangladesh," IMF Working Papers 04/108, International Monetary Fund.
- Fernandes, Ana Margarida, 2006.
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Policy Research Working Paper Series
3988, The World Bank.
- Fernandes, Ana M., 2008. "Firm Productivity in Bangladesh Manufacturing Industries," World Development, Elsevier, vol. 36(10), pages 1725-1744, October.
- Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, December.
- Stephanie Barrientos, 2000. "Globalization and ethical trade: assessing the implications for development," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(4), pages 559-570.
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