Chapter 5 The contest for value capture: labor as a claimant of value
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Chapter 5 presents the contest for value between Bangladesh's apparel labor and the manufacturers. Analyses of value creation and appropriation by Bangladesh labor, measured respectively by productivity and wages, show large and growing imbalance between the two. This finding is consistent with those of other studies on value capture by low-skills labor in global supply chains. We discuss reasons for the failure of markets to correct for this distorted distribution, and suggest that the absence of market mechanisms that would drive outcomes towards balanced distribution offer ground for government intervention. We outline policy measures - at the national and international levels - that hold the promise of improving value appropriation by labor and consider their shortcomings in instilling balanced value distribution.

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