IDEAS home Printed from https://ideas.repec.org/a/spr/snbeco/v3y2023i7d10.1007_s43546-023-00510-8.html
   My bibliography  Save this article

Coping with the economic effects of COVID-19: an evidence from the Bangladesh labour market

Author

Listed:
  • M. A. Baqui Khalily

    (University of Asia Pacific)

  • Mohammed Jamal Uddin

    (University of Chittagong)

  • Tunazzina Sultana

    (University of Chittagong)

  • Naim Uddin Hasan Awrangajeb Chy

    (University of Chittagong)

  • Zapan Barua

    (University of Chittagong)

Abstract

The world has experienced severe effects of COVID-19. Amongst others, it has affected the labour market. Evidences are largely available on the developed countries. Although some sporadic numbers are available in Bangladesh, no systematic study has been conducted on the effects of COVID-19 on the labour market, and the coping strategies of the affected workers in Bangladesh. This paper examines the effects of COVID-19 on the labour market in Bangladesh and investigates the coping strategies adopted by the affected workers. This study uses survey data of 296 randomly selected samples from six most important sectors, namely, ready-made garments (RMG), port, construction, restaurant, health, and transport. The quantitative analysis is complemented by the qualitative analysis based on two FGDs. It shows that about 73 percent of the workers were affected by the lockdown measures at aggregate level. Around 41 percent of the full-time workers became unemployed during the lockdown period. The RMG sector was least affected. Those in the affected group of the COVID disaster earned an income that was substantially lower than the unaffected. Most of these affected workers survived mostly by dissaving and borrowing from informal sources; and around one-third adopted consumption rationing as coping strategies. Our econometric analysis shows that the workers in informal sector are more affected than those in the organised sector. Similar evidences are also derived from the FGDs, providing more insight into the underlying coping strategies. The findings have both short-run and long-run policy implications to cope with disasters like COVID-19.

Suggested Citation

  • M. A. Baqui Khalily & Mohammed Jamal Uddin & Tunazzina Sultana & Naim Uddin Hasan Awrangajeb Chy & Zapan Barua, 2023. "Coping with the economic effects of COVID-19: an evidence from the Bangladesh labour market," SN Business & Economics, Springer, vol. 3(7), pages 1-26, July.
    • Handle: RePEc:spr:snbeco:v:3:y:2023:i:7:d:10.1007_s43546-023-00510-8
    DOI: 10.1007/s43546-023-00510-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s43546-023-00510-8
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s43546-023-00510-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mou Rani Sarker, 2021. "Labor market and unpaid works implications of COVID‐19 for Bangladeshi women," Gender, Work and Organization, Wiley Blackwell, vol. 28(S2), pages 597-604, July.
    2. Winsemius, Hessel C. & Jongman, Brenden & Veldkamp, Ted I.E. & Hallegatte, Stephane & Bangalore, Mook & Ward, Philip J., 2018. "Disaster risk, climate change, and poverty: assessing the global exposure of poor people to floods and droughts," Environment and Development Economics, Cambridge University Press, vol. 23(3), pages 328-348, June.
    3. Adams-Prassl, Abi & Boneva, Teodora & Golin, Marta & Rauh, Christopher, 2020. "Inequality in the impact of the coronavirus shock: Evidence from real time surveys," Journal of Public Economics, Elsevier, vol. 189(C).
    4. Thomas Lemieux & Kevin Milligan & Tammy Schirle & Mikal Skuterud, 2020. "Initial Impacts of the COVID-19 Pandemic on the Canadian Labour Market," Canadian Public Policy, University of Toronto Press, vol. 46(S1), pages 55-65, July.
    5. Balana, Bedru B. & Oyeyemi, Motunrayo A. & Ogunniyi, Adebayo I. & Fasoranti, Adetunji & Edeh, Hyacinth & Aiki, Joel & Andam, Kwaw S., 2020. "The effects of COVID-19 policies on livelihoods and food security of smallholder farm households in Nigeria: Descriptive results from a phone survey," IFPRI discussion papers 1979, International Food Policy Research Institute (IFPRI).
    6. Carol Newman & Fiona Wainwright, 2011. "Income Shocks and Household Risk-Coping Strategies: Evidence from Rural Vietnam," The Institute for International Integration Studies Discussion Paper Series iiisdp358, IIIS.
    7. Eleftherios Giovanis & Oznur Ozdamar, 2021. "Coping Strategies, Well-Being and Inequalities During the Covid-19 Pandemic Period," Working Papers 1521, Economic Research Forum, revised 20 Dec 2021.
    8. Ronak Jain & Joshua Budlender & Rocco Zizzamia & Ihsaan Bassier, 2020. "The labor market and poverty impacts of COVID-19 in South Africa," CSAE Working Paper Series 2020-14, Centre for the Study of African Economies, University of Oxford.
    9. Joydeb Garai, 2017. "Qualitative analysis of coping strategies of cyclone disaster in coastal area of Bangladesh," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 85(1), pages 425-435, January.
    10. S. R. Osmani & Meherun Ahmed, 2013. "Vulnerability to Shocks and Coping Strategies in Rural Bangladesh," Working Papers 21, Institute of Microfinance (InM).
    11. Kansiime, Monica K. & Tambo, Justice A. & Mugambi, Idah & Bundi, Mary & Kara, Augustine & Owuor, Charles, 2021. "COVID-19 implications on household income and food security in Kenya and Uganda: Findings from a rapid assessment," World Development, Elsevier, vol. 137(C).
    12. Sawada, Yasuyuki & Takasaki, Yoshito, 2017. "Natural Disaster, Poverty, and Development: An Introduction," World Development, Elsevier, vol. 94(C), pages 2-15.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mohammad Mazharul Islam & Mohammad Muzahidul Islam & Haitham Khoj, 2022. "Coping Mechanisms and Quality of Life of Low-Income Households during the COVID-19 Pandemic: Empirical Evidence from Bangladesh," Sustainability, MDPI, vol. 14(24), pages 1-24, December.
    2. Ana Tribin & Karen García-Rojas & Paula Herrera-Idarraga & Leonardo Fabio Morales & Natalia Ramirez-Bustamante, 2023. "Shecession: The Downfall of Colombian Women During the Covid-19 Pandemic," Feminist Economics, Taylor & Francis Journals, vol. 29(4), pages 158-193, October.
    3. Bellatin, Alejandra & Galassi, Gabriela, 2022. "What COVID-19 May Leave Behind: Technology-Related Job Postings in Canada," IZA Discussion Papers 15209, Institute of Labor Economics (IZA).
    4. Tavares, Aida Isabel, 2021. "Working more and less hours, profiling old European workers during first wave of COVID-19 pandemic, evidence from SHARE data," MPRA Paper 111263, University Library of Munich, Germany.
    5. Zimpelmann, Christian & Gaudecker, Hans-Martin von & Holler, Radost & Janys, Lena & Siflinger, Bettina, 2021. "Hours and income dynamics during the Covid-19 pandemic: The case of the Netherlands," Labour Economics, Elsevier, vol. 73(C).
    6. Ben Yahmed, Sarra & Berlingieri, Francesco & Brüll, Eduard, 2022. "Adjustments of local labour markets to the COVID-19 crisis: The role of digitalisation and working-from-home," ZEW Discussion Papers 22-031, ZEW - Leibniz Centre for European Economic Research.
    7. Stephan Dietrich & Valerio Giuffrida & Bruno Martorano & Georg Schmerzeck, 2022. "COVID‐19 policy responses, mobility, and food prices," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(2), pages 569-588, March.
    8. Ainaa, Carmen & Brunetti, Irene & Mussida, Chiara & Scicchitano, Sergio, 2021. "Who lost the most? Distributive effects of COVID-19 pandemic," GLO Discussion Paper Series 829, Global Labor Organization (GLO).
    9. Yichen Shen & Rong Fu & Haruko Noguchi, 2021. "COVID‐19's Lockdown and Crime Victimization: The State of Emergency under the Abe Administration," Asian Economic Policy Review, Japan Center for Economic Research, vol. 16(2), pages 327-348, July.
    10. Louis‐Philippe Beland & Abel Brodeur & Derek Mikola & Taylor Wright, 2022. "The short‐term economic consequences of COVID‐19: Occupation tasks and mental health in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(S1), pages 214-247, February.
    11. Adjognon, Guigonan Serge & Bloem, Jeffrey R. & Sanoh, Aly, 2021. "The coronavirus pandemic and food security: Evidence from Mali," Food Policy, Elsevier, vol. 101(C).
    12. Liang, Xiao & Rozelle, Scott & Yi, Hongmei, 2022. "The impact of COVID-19 on employment and income of vocational graduates in China: Evidence from surveys in January and July 2020," China Economic Review, Elsevier, vol. 75(C).
    13. Carmen Aina & Irene Brunetti & Chiara Mussida & Sergio Scicchitano, 2023. "Distributional effects of COVID-19," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(1), pages 221-256, March.
    14. Swati Dhingra & Stephen Machin, 2020. "The crisis and job guarantees in urban India," CEP Discussion Papers dp1719, Centre for Economic Performance, LSE.
    15. Taiyo Fukai & Hidehiko Ichimura & Keisuke Kawata, 2021. "Describing the impacts of COVID-19 on the labor market in Japan until June 2020," The Japanese Economic Review, Springer, vol. 72(3), pages 439-470, July.
    16. Martin Paul Jr. Tabe-Ojong & Emmanuel Nshakira-Rukundo & Bisrat Haile Gebrekidan, 2023. "COVID-19 and food insecurity in Africa: A review of the emerging empirical evidence," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 50(3), pages 853-878.
    17. Adjognon,Guigonan Serge & Bloem,Jeffrey R. & Sanoh,Aly, 2020. "The Coronavirus Pandemic and Food Security : Evidence from West Africa," Policy Research Working Paper Series 9474, The World Bank.
    18. Louis-Philippe Beland & Abel Brodeur & Derek Mikola & Taylor Wright, 2020. "COVID-19, Occupation Tasks and Mental Health in Canada," Carleton Economic Papers 20-07, Carleton University, Department of Economics, revised 30 Jun 2020.
    19. Pierre‐Loup Beauregard & Marie Connolly & Catherine Haeck & Tímea Laura Molnár, 2022. "Primary school reopenings and parental work," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(S1), pages 248-281, February.
    20. MAMOUDOU Ba & Mazhar Mughal, 2022. "Weather Shocks, Coping Strategies and Household Well-being: Evidence from Rural Mauritania," Journal of Development Studies, Taylor & Francis Journals, vol. 58(3), pages 482-502, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:snbeco:v:3:y:2023:i:7:d:10.1007_s43546-023-00510-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.