IntroductionRana Plaza, an eight-story building housing a garment factory and some stores, collapsed on April 24, 2013 in Savar, Bangladesh. 1,129 people were killed and 2,500 others were injured. The incident made international news, and attention attracted by the disaster quickly turned to the appallingly poor working conditions of the garment factory workers due to the nature of labor institutions in Bangladesh. The garment factory was a textile supplier to over 96 different multinational companies (MNCs), including H&M, Zara, C&A and Benetton. In the aftermath of the collapse, businesses and local government were pressured to implement changes to improve working conditions. This essay will analyze the changes in detail and answer the question: What impact did Rana Plaza have on labor market institutions? Developed countries (LDCs) due to their less restrictive labor institutions. Bangladesh's population is 163 million, of which 62% are of working age and 18% are between 15 and 24 years old. A large supply of labor puts downward pressure on wage levels as many people compete for jobs. Employers, who by nature seek to maximize profits, will want to pay workers the lowest possible wage level and will therefore hire those who are willing to work at the lowest wages. A report by ICF International found that child labor was a significant phenomenon in the informal textile industry. This further expands the labor pool and increases downward pressure on wages. These downward pressures in turn affect the legal minimum of paper ......able and lack protection. In 2012, Aminul Islam, a union organizer who helped ABC News expose working conditions in Bangladeshi garment factories, was found tortured and murdered. This lack of protection facilitates the exploitation of workers in the garment sector. Additionally, in Bangladesh, rules and regulations are not enforced as much as in more developed countries. Rules and regulations are often a cost, as it takes more time and money to ensure buildings comply with them. Without control, buildings can be constructed more quickly and at lower cost, but at the expense of safety. Rana Plaza is no exception as the upper four floors were built illegally and without permits. Additionally, the building's foundations were found to be of substandard quality. As garment factories are suppliers and not directly owned by multinationals, they feel less responsible for their management..