2012年-世界发展银行全球_Female_Wages_in_the_Apparel_Industry_Post-MFA___The_Cases_of_Cambodia_and_Sri_Lanka_21页_1mb

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

Core Content

This working paper analyzes the impact of the end of the Multi-fiber Arrangement (MFA) on female wages and working conditions in the apparel industry in Cambodia and Sri Lanka. The MFA, which governed textile and apparel trade between industrialized and developing countries from 1974 to 2005, was terminated on January 1, 2005, leading to increased global competition and a decline in apparel prices. The study explores how this price shock affected wages and working conditions, particularly for women who dominate the sector in both countries.

Main Points

• MFA Termination and Global Impact: The MFA's end led to a dramatic shift in global apparel production and trade, with China capturing a larger share, while Cambodia and Sri Lanka saw increased export volumes but faced competition from lower-cost producers.

• Apparel Industry Characteristics:

  • In Cambodia, the apparel sector accounted for 70% of total manufacturing exports and employed 325,000 workers in 2008.
  • In Sri Lanka, the sector represented 40% of total exports and employed 270,000 workers in 2008.
  • Women constitute the majority of workers in both countries: 83% in Cambodia and 73% in Sri Lanka.

• Wage Premium and Gender Gap:

  • The MFA phase-out caused a decline in apparel wage premiums relative to other industries.
  • The male-female wage gap widened in the long run, consistent with theoretical predictions.
  • The short-run effect was a decrease in female wages in the apparel sector, while the long-run effect was a relative decrease in female wages across all industries.

• Working Conditions:

  • The paper examines working conditions as a form of compensation, considering factors like working hours, overtime, in-kind compensation, and child labor.
  • Mixed results were found regarding working conditions post-MFA.
  • The empirical model used to analyze working conditions showed that the coefficient ψ reflects the change in working conditions for women in the apparel industry relative to men and other industries.

Key Findings

• Wage Trends:

  • In Cambodia, apparel wages were consistently higher than the national average, but this trend declined post-MFA.
  • In Sri Lanka, apparel wages were slightly lower than the national average, and the wage premium also decreased after the MFA phase-out.
  • The wage premium in the apparel sector relative to other industries decreased in both countries, and the male-female wage gap increased.

• Unit Prices:

  • After the MFA phase-out, unit prices of apparel exports declined in both countries.
  • In Sri Lanka, unit prices to the EU dropped from $59 to $42 per dozen between 2004 and 2008.
  • In Cambodia, unit prices to the U.S. fell by 25% over the same period, from $52 to $39 per dozen, while the decline in EU prices was smaller (7%).

• Empirical Methodology:

  • The study uses a Mincerian wage equation to estimate wage differentials and incorporates a two-step Heckman approach to correct for selection bias.
  • The model also includes variables such as education, age, gender, marital status, and industry/occupation dummies to assess wage and working condition changes.

• Data Sources:

  • Cambodia data come from the Cambodia Socio-Economic Surveys (CSES) and labor force surveys.
  • Sri Lanka data are based on the Household Income and Expenditure Surveys (HIES) and Labor Force Surveys (LFS).
  • These data provide insights into labor force characteristics, education levels, and wage trends in both countries.

Conclusion

The paper concludes that the removal of the MFA led to a significant decline in apparel prices, which in turn affected female wages and working conditions in both Cambodia and Sri Lanka. While the short-term impact was a decrease in wage premiums, the long-term effect was a widening of the gender wage gap. Working conditions also showed mixed outcomes, depending on the measurement used. The findings support the theoretical model that trade liberalization leads to wage changes in the short and long run, with the latter being more pronounced for female workers in female-intensive industries.

Key Information

• Countries Studied: Cambodia and Sri Lanka.
• Timeframe: 1996–2009.
• Industry Focus: Apparel manufacturing.
• Key Variables Analyzed: Wages, working conditions, education, age, gender, and industry-specific factors.
• Theoretical Model: Based on the work of Robertson and Trigueros-Arguello (2011), incorporating the Stolper-Samuelson theorem.
• Empirical Approach: Mincerian wage equation and two-step Heckman selection correction.
• Main Outcomes:
  • Decline in apparel wage premiums.
  • Increase in the male-female wage gap.
  • Mixed results on working conditions.