Discussion Paper 23: Labour Compliance and Factory Performance

9 Mar 2017

Evidence from the Cambodian garment industry

This paper examines the association between various working conditions and the performance (profit rate, productivity, and employment) of the Cambodian garment-exporting factories between 2001-2002 and 2006-2008. Using a unique factory-level data set, we mainly find that higher overall compliance is associated with higher labor productivity and employment, higher compliance in the area of modern human resource management is associated with higher profit rate, TFP, and employment, and higher compliance in occupational safety and health is positively associated with employment.


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