What is the Relationship Between Labor Law Compliance and Employment Growth in Cambodian Garment Exporting Factories?

Authors

Vidarith Chan, Macalester College

Document Type

Honors Project - Open Access

Abstract

In this study, I examine the short- and long-run relationship between labor law compliance and employment growth in the Cambodian garment exporting factories. My paper contributes to the literature in two ways. First, I use the original working conditions dataset (2001-2013) from the International Labor Organization's Better Factories Cambodia that has not been analyzed before. Second, I use panel data techniques to investigate the short- and long-run relationship between labor law compliance and employment growth. In the short-run, I find that labor law compliance has an inverse relationship with employment growth. However, in the long-run, the sign of the relationship changes. Therefore, I conclude that Cambodian factories should improve labor law compliance as it will lead to employment growth in the long-run.

Recommended Citation

Chan, Vidarith, "What is the Relationship Between Labor Law Compliance and Employment Growth in Cambodian Garment Exporting Factories?" (2014). Economics Honors Projects. 60.
https://digitalcommons.macalester.edu/economics_honors_projects/60