Female Wages in the Apparel Industry Post-MFA : The Cases of Cambodia and Sri Lanka

The end of the Multi-fiber Arrangement/Agreement on Textiles and Clothing in 2005 was a major policy change that affected the allocation of global apparel productions well as the lives of workers involved in this sector. Since the apparel industry is often the major female employer in developing countries, this policy change was expected to have major implications for women. This paper analyzes the wages and working conditions of women in the apparel sector in Cambodia and Sri Lanka following the phase-out the Multi-fibre Arrangement. In both countries, apparel is a major source of exports, and women constitute 70 to 80 percent of the workers employed in the apparel industry. The paper finds that after the removal of the Multi-fibre Arrangement, apparel prices declined as a result of the increased competition. The theoretical model suggests that a decrease in prices would lead to a decrease in apparel wage premiums relative to other industries in the short run and the widening of the male-female wage gap in the long run. The empirical findings support these theoretical predictions. Wage premiums in the apparel sector relative to other industries went down post-Multi-fibre Arrangement in Cambodia and Sri Lanka and the male-female wage gap increased. The paper finds mixed results in terms of working conditions in Cambodia and Sri Lanka.

Bibliographic Details

Main Authors:	Savchenko, Yevgeniya, Lopez Acevedo, Gladys
Language:	English
Published:	World Bank, Washington, DC 2012-05
Subjects:	ACCOUNTING, APPAREL, APPAREL EXPORT, APPAREL EXPORTS, APPAREL INDUSTRIES, APPAREL INDUSTRY, APPAREL MANUFACTURING, APPAREL SECTOR, APPAREL TRADE, AVERAGE WAGES, BONUSES, CHILD LABOR, COLLECTIVE BARGAINING, COMPETITIVE PRESSURE, CONSTRUCTION, ECONOMICS, EMPLOYEE, EMPLOYMENT, EMPLOYMENT LEVELS, EMPLOYMENT SHARE, EMPLOYMENT STATUS, EMPLOYMENT TRENDS, EXPORT GROWTH, EXPORT VOLUMES, EXPORTS, FOREIGN INVESTMENT, FOREIGN INVESTOR, FOREIGN INVESTORS, FULL EMPLOYMENT, HAZARDOUS WORK, HOURS OF WORK, HOUSEHOLD CHARACTERISTICS, HOUSEHOLD INCOME, HOUSEHOLD SURVEY, HOUSEHOLD SURVEYS, IMPORT PRICES, INCOME, INDUSTRY WAGE, INDUSTRY WAGE DIFFERENTIALS, INFORMAL LABOR MARKET, INSURANCE, INTERNATIONAL TRADE, JOBS, LABOR COSTS, LABOR FORCE, LABOR MARKET, LABOR MARKETS, LABOR STANDARDS, LABOUR, LONG-RUN EFFECT, MALE WORKERS, MANUFACTURING INDUSTRY, MANUFACTURING WAGES, MARKET SHARE, MARKET SHARES, MOTIVATION, OCCUPATION, OVERTIME, OVERTIME WORK, PRODUCTIVITY, SAFEGUARDS, SOCIAL BENEFITS, TOTAL EMPLOYMENT, TOTAL LABOR FORCE, TRADE AGREEMENTS, TRADE LIBERALIZATION, TRADE UNIONS, UNEMPLOYMENT, WAGE DIFFERENTIAL, WAGE EFFECTS, WAGE GAP, WAGE INEQUALITY, WAGE LEVELS, WAGE PREMIUM, WAGE PREMIUMS, WAGE RATE, WAGE STRUCTURE, WAGES, WOMEN WORKERS, WORK ENVIRONMENT, WORK IN PROGRESS, WORKER, WORKING, WORKING CONDITION, WORKING CONDITIONS, WORKING HOURS, WORKPLACE, WORLD TRADE, WORLD TRADE ORGANIZATION,
Online Access:	http://documents.worldbank.org/curated/en/2012/05/16258530/female-wages-apparel-industry-post-mfa-cases-cambodia-sri-lanka https://hdl.handle.net/10986/9343
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