Working Conditions, Transparency, and Compliance in Global Value Chains: Evidence from Better Work Jordan

43 Pages Posted: 4 Dec 2019

Abstract

This paper estimates how compliance with national labor law and international labor standards within Jordan's garment exporting factories changed after the implementation of a transparency program that made compliance assessments publicly available. The estimation employs data from Better Work Jordan that cover all garment-exporting factories over the 2008-2018 period. Using a difference-in-difference approach that is often applied to control for endogeneity, this paper finds that compliance improved following the implementation of transparency. Compliance increased in a group of 28 critical compliance areas that represent fundamental worker rights relative to relevant comparison groups. The results are robust to a number of additional controls, definitions of the transparency period, and estimation approaches.

Keywords: global value chains, working conditions, transparency

JEL Classification: J8, J5, J3

Suggested Citation

Robertson, Raymond, Working Conditions, Transparency, and Compliance in Global Value Chains: Evidence from Better Work Jordan. IZA Discussion Paper No. 12794, Available at SSRN: https://ssrn.com/abstract=3495771

Raymond Robertson (Contact Author)

Texas A&M University ( email )

TAMU 4220
1004 George Bush Dr West
College Station, TX 77843
United States

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