005. Compliance, Wages, and Factory Workers
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005. Compliance, Wages, and Factory Workers
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On the 24th of April 2013, an eight-storied ready-made garments (RMG) factory, named Rana Plaza, collapsed, leading to the death of over 1,000 workers and injuring over 2,500 more. The aftermath was an increase in international pressure for compliance of RMG factories regarding worker safety.
One of the concerns raised was whether an increase in compliance could reduce workers' wages or employment in an already extortionist market. Coupled with ongoing strikes to increase factory workers’ minimum wage, another related question is how raising total compensation affects the RMG industry.
In this episode, we turn to Rachel Heath, an associate professor at the University of Washington, for an answer to this question.
Here is a link to the academic paper.