Summary
The study draws on national survey data and factory-level audit reports carried out by the Better Factories Cambodia (BFC) program to explore changes in the wage differentials across and within industries, as well as changes in working conditions across time and in relation to they BFC visits. Using panel data and regression analysis the authors find that working conditions and wages, especially for women, improved dramatically. They attribute these changes to the BFC program, but also the U.S. Cambodia Trade Agreement, access to U.S. markets, and the condition that labor standards improve in order to receive access to the U.S. market. The results suggest that both external forces and BFC visits play a role in improvements in working conditions over time. Changes that are attributable to BFC are arguably those that are important for productivity and high on the list of workers’ concerns, such as payments of wages.