Haiti’s garment industry enjoys a number of favorable conditions. Through trade acts and agreements, Haitian manufacturing companies have duty free access to the United States. This builds on Haiti’s advantage of being in close proximity to U.S. buyers. Haitian manufacturers have established relationships with U.S. buyers, and are large enough to have achieved economies of scale. Haitian manufacturers also enjoy relatively low wages and favorable labor regulations.
This paper uses hedonic regression analysis to examine the salaries of 876 observations provided by 79 independent employers throughout Haiti. Its results identify salary drivers that have a statistically significant effect on salaries and it estimates those effects in a meaningful way for employers and managers to use.
There is strong investor interest in Haiti that could generate 380,000 jobs by 2030. With abundant affordable labor and close proximity to the U.S., Haiti possesses good potential to capture new investments in the apparel, agri-business, construction/building materials, logistics, and tourism sectors in the near term, while transitioning over time to other higher-value industries and services.