The Effects of International Scrutiny on Manufacturing Workers : Evidence from the Rana Plaza Collapse in Bangladesh

After the tragic factory collapse of Rana Plaza in 2013, the direct reforms and indirect responses of retailers have both plausibly affected workers in the ready-made garment sector in Bangladesh. These reforms include a minimum wage increase, high...

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Main Authors:	Bossavie, Laurent, Cho, Yoonyoung, Heath, Rachel
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2019
Subjects:	GARMENT INDUSTRY MINIMUM WAGE WORKING CONDITIONS GENDER LABOR STANDARDS LABOR FORCE JOB SECURITY
Online Access:	http://documents.worldbank.org/curated/en/301881574283378595/The-Effects-of-International-Scrutiny-on-Manufacturing-Workers-Evidence-from-the-Rana-Plaza-Collapse-in-Bangladesh http://hdl.handle.net/10986/32674

id	okr-10986-32674
recordtype	oai_dc
spelling	okr-10986-326742022-09-20T00:12:05Z The Effects of International Scrutiny on Manufacturing Workers : Evidence from the Rana Plaza Collapse in Bangladesh Bossavie, Laurent Cho, Yoonyoung Heath, Rachel GARMENT INDUSTRY MINIMUM WAGE WORKING CONDITIONS GENDER LABOR STANDARDS LABOR FORCE JOB SECURITY After the tragic factory collapse of Rana Plaza in 2013, the direct reforms and indirect responses of retailers have both plausibly affected workers in the ready-made garment sector in Bangladesh. These reforms include a minimum wage increase, high profile but voluntary audits, and an increased reluctance to subcontract to smaller factories. This paper uses six rounds of the Labor Force Survey and adopts a difference-in-difference approach to evaluate the net effects of these changes on garment workers, compared with workers in other manufacturing industries and other plausible control groups. Although employers appear to have increased sick leave and some measures of safety at work, they simultaneously have reduced job security in the form of written contracts. The study also finds that, a few years after Rana Plaza, average hourly wages have fallen significantly for female workers. The results suggest that regulations that are initially aimed at helping workers can have unintended adverse effects on several dimensions of workers' outcomes. 2019-11-21T20:40:49Z 2019-11-21T20:40:49Z 2019-11 Working Paper http://documents.worldbank.org/curated/en/301881574283378595/The-Effects-of-International-Scrutiny-on-Manufacturing-Workers-Evidence-from-the-Rana-Plaza-Collapse-in-Bangladesh http://hdl.handle.net/10986/32674 English Policy Research Working Paper;No. 9065 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia Bangladesh
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	GARMENT INDUSTRY MINIMUM WAGE WORKING CONDITIONS GENDER LABOR STANDARDS LABOR FORCE JOB SECURITY
spellingShingle	GARMENT INDUSTRY MINIMUM WAGE WORKING CONDITIONS GENDER LABOR STANDARDS LABOR FORCE JOB SECURITY Bossavie, Laurent Cho, Yoonyoung Heath, Rachel The Effects of International Scrutiny on Manufacturing Workers : Evidence from the Rana Plaza Collapse in Bangladesh
geographic_facet	South Asia Bangladesh
relation	Policy Research Working Paper;No. 9065
description	After the tragic factory collapse of Rana Plaza in 2013, the direct reforms and indirect responses of retailers have both plausibly affected workers in the ready-made garment sector in Bangladesh. These reforms include a minimum wage increase, high profile but voluntary audits, and an increased reluctance to subcontract to smaller factories. This paper uses six rounds of the Labor Force Survey and adopts a difference-in-difference approach to evaluate the net effects of these changes on garment workers, compared with workers in other manufacturing industries and other plausible control groups. Although employers appear to have increased sick leave and some measures of safety at work, they simultaneously have reduced job security in the form of written contracts. The study also finds that, a few years after Rana Plaza, average hourly wages have fallen significantly for female workers. The results suggest that regulations that are initially aimed at helping workers can have unintended adverse effects on several dimensions of workers' outcomes.
format	Working Paper
author	Bossavie, Laurent Cho, Yoonyoung Heath, Rachel
author_facet	Bossavie, Laurent Cho, Yoonyoung Heath, Rachel
author_sort	Bossavie, Laurent
title	The Effects of International Scrutiny on Manufacturing Workers : Evidence from the Rana Plaza Collapse in Bangladesh
title_short	The Effects of International Scrutiny on Manufacturing Workers : Evidence from the Rana Plaza Collapse in Bangladesh
title_full	The Effects of International Scrutiny on Manufacturing Workers : Evidence from the Rana Plaza Collapse in Bangladesh
title_fullStr	The Effects of International Scrutiny on Manufacturing Workers : Evidence from the Rana Plaza Collapse in Bangladesh
title_full_unstemmed	The Effects of International Scrutiny on Manufacturing Workers : Evidence from the Rana Plaza Collapse in Bangladesh
title_sort	effects of international scrutiny on manufacturing workers : evidence from the rana plaza collapse in bangladesh
publisher	World Bank, Washington, DC
publishDate	2019
url	http://documents.worldbank.org/curated/en/301881574283378595/The-Effects-of-International-Scrutiny-on-Manufacturing-Workers-Evidence-from-the-Rana-Plaza-Collapse-in-Bangladesh http://hdl.handle.net/10986/32674
_version_	1764477046148300800

The Effects of International Scrutiny on Manufacturing Workers : Evidence from the Rana Plaza Collapse in Bangladesh

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