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Rising wages in Bangladesh:

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  • Zhang, Xiaobo
  • Rashid, Shahidur
  • Ahmad, Kaikaus
  • Mueller, Valerie
  • Lee, Hak Lim
  • Lemma, Solomon
  • Belal, Saika
  • Ahmed, Akhter U.

Abstract

Using data from multiple sources, we show that in Bangladesh, the increase in real wages, particularly female wages, has accelerated since the late 2000s, suggesting that the Lewis turning point (the point at which the labor market starts to shift in favor of workers) has arrived in Bangladesh. Rising wages are likely a result of a combination of more ample job opportunities in the nonfarm sector, especially in the manufacturing sector for females, and a greater amount of remittances, primarily from male workers overseas. Since human capital is the most important asset for the poor, the escalation in real wages has boosted the poor’s earnings, thereby reducing their likelihood of being poor.

Suggested Citation

  • Zhang, Xiaobo & Rashid, Shahidur & Ahmad, Kaikaus & Mueller, Valerie & Lee, Hak Lim & Lemma, Solomon & Belal, Saika & Ahmed, Akhter U., 2013. "Rising wages in Bangladesh:," IFPRI discussion papers 1249, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:1249
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    References listed on IDEAS

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    1. World Bank, 2008. "Poverty Assessment for Bangladesh," World Bank Publications - Reports 28239, The World Bank Group.
    2. World Bank, 2008. "Bangladesh - Poverty Assessment for Bangladesh : Creating Opportunities and Bridging the East-West Divide," World Bank Publications - Reports 7886, The World Bank Group.
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    Cited by:

    1. Headey, Derek D. & Hoddinott, John, 2016. "Agriculture, nutrition and the green revolution in Bangladesh," Agricultural Systems, Elsevier, vol. 149(C), pages 122-131.
    2. Belton, Ben & van Asseldonk, Imke Josepha Mariana & Thilsted, Shakuntala Haraksingh, 2014. "Faltering fisheries and ascendant aquaculture: Implications for food and nutrition security in Bangladesh," Food Policy, Elsevier, vol. 44(C), pages 77-87.
    3. Rashid, Shahidur & Tefera, Nigussie & Lemma, Solomon & Yunus, Mohammad, 2014. "Population pressure and livelihood dynamics: Panel evidence from Bangladesh," IFPRI discussion papers 1326, International Food Policy Research Institute (IFPRI).
    4. Katsushi S. Imai & Bilal Malaeb, 2016. "Asia's Rural-urban Disparity in the Context of Growing Inequality," Discussion Paper Series DP2016-29, Research Institute for Economics & Business Administration, Kobe University.
    5. Agha Ali Akram & Shyamal Chowdhury & Ahmed Mushfiq Mobarak, 2017. "Effects of Emigration on Rural Labor Markets," NBER Working Papers 23929, National Bureau of Economic Research, Inc.
    6. Md. Fuad Hassan & Lukas Kornher, 2022. "Farm wage and Rice Price dynamics in Bangladesh," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(1), pages 127-146, February.
    7. Aiko Kikkawa & Keijiro Otsuka, 2020. "The changing landscape of international migration: evidence from rural households in Bangladesh, 2000–2014," Oxford Development Studies, Taylor & Francis Journals, vol. 48(3), pages 222-239, July.
    8. Wiggins, Steve & Keats, Sharada, 2015. "Rural Wages in Asia," 2015 Conference, August 9-14, 2015, Milan, Italy 212615, International Association of Agricultural Economists.
    9. Clarke, Daniel J. & Kumar, Neha, 2015. "Microinsurance decisions: Gendered evidence from rural Bangladesh:," IFPRI discussion papers 1465, International Food Policy Research Institute (IFPRI).
    10. Derek D Headey, 2018. "Food Prices and Poverty," The World Bank Economic Review, World Bank, vol. 32(3), pages 676-691.
    11. Toufique, Kazi Ali & Belton, Ben, 2014. "Is Aquaculture Pro-Poor? Empirical Evidence of Impacts on Fish Consumption in Bangladesh," World Development, Elsevier, vol. 64(C), pages 609-620.
    12. Osmani, S R, 2015. "The Growth-Equity Nexus in Bangladesh: An Analysis of Recent Experience," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 38(2), pages 1-59, June.
    13. Headey, Derek D., 2014. "Food prices and poverty reduction in the long run:," IFPRI discussion papers 1331, International Food Policy Research Institute (IFPRI).

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    More about this item

    Keywords

    Wages; wage rates; Lewis turning point; Labor market; Industrialization; Gender; Women; Remittances;
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