Working Conditions, Work Outcomes, and Policy in Asian Developing Countries

Abstract

Developing country labor practices and the working conditions that result from them are both generally poor and increasingly drawing attention from governments, corporations, and the popular media. This review provides an introduction to some of the leading academic literature and ideas that are important for understanding the persistence of poor labor practices and possible policies to address these conditions. The literature is reviewed with the goal of moving from the root causes of poor conditions to innovative solutions. Several such solutions, such as the Better Work program, are discussed.

Evidence in Asian Food Industry: Intellectual Capital, Corporate Financial Performance, and Corporate Social Responsibility

“…Asia is mostly composed of developing countries. Recently, lawmakers, businesses, and mass media are attentive to the issues of poor labor practices and working conditions in developing economies [21]. For instance, the cost reduction of materials and processes by transferring the production to developing countries, increases the problem of food safety [22].…”

Do working and living conditions influence brick-kiln productivity? Evidence from Nepal

“…The RBV also explains the differing capacities of the firms to face market challenges, particularly relating to the ability of small companies to use their social and personal capital to survive in the marketplace, as it largely dictates their willingness to invest [18]. Even if the firms are aware of the benefits of investing in WLCs, they may not be large enough or have the required time horizon to capture the expected benefits [17].…”

Factory benefits to paying workers more: The critical role of compensation systems in apparel manufacturing

“…On days with new product-styles, more difficult product-styles, or multiple product-style changes (requiring more or fewer workers and/or different machines), simply working for overtime (when pay increases by time-and-one-half) becomes the best method to maximize take-home pay while minimizing effort. Even though it costs the factory more per labor hour, managers accept overtime as normal business practice, as it allows them to accommodate variable order sizes, hire fewer full-time workers, flex worker hours during production peaks, and not have to lay off workers during slow periods [25,41].…”

“…While firm practices can be considered prima facie evidence for efficient and effective policy [24](such that sweating workers may actually be a perverse, profit-maximizing strategy), apparel factory management practices are likely to be sub-optimal for a number of reasons [25]. One major contributing factor is that though women constitute a majority of apparel factory workers, they rarely occupy management or high-status positions [26,27].…”