Is Wage Theft Worth it? An analysis of the profitability of wage theft and the role of reciprocity in the factory-worker relationship in Vietnamese apparel factories.

Rondon Ichikawa, Gabriel I.

2016

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  • This paper examines the impact wage theft can have on a firm’s level of productivity and how wage theft impacts the role reciprocity plays in the relationship between factories and workers in Vietnamese Apparel factories. Ostensibly, by lowering costs, wage theft is a profit-maximizing practice. However, insights from behavioral economics suggest that is not always the case. Departing from the ... read more
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