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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- Fernandes, Ana M., 2008.
"Firm Productivity in Bangladesh Manufacturing Industries,"
Elsevier, vol. 36(10), pages 1725-1744, October.
- Fernandes, Ana Margarida, 2006. "Firm Productivity in Bangladesh Manufacturing Industries," Policy Research Working Paper Series 3988, The World Bank.
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- 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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