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Labor market and gender impacts of agricultural mechanization: Evidence from Bangladesh's combine harvester subsidy program

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  • Mahzab, Moogdho
  • Bakhtiar, M. Mehrab
  • Karim, Md. Aminul
  • Quisumbing, Agnes R.
  • Roy, Shalini

Abstract

Bangladesh's Phase III agricultural mechanization subsidy program (2020–2024) distributed over 35,000 machines worth BDT 1,595 crore (USD 163 million), including nearly 9,000 combine harvesters (CHs) that accounted for 84% of machinery expenditure. Earlier causal econometric analysis suggests that high-allocation CH areas saw 6-13% yield gains, 38-70% lower labor costs, and 12-26% lower production costs. In this note, we explore the distributional consequences of subsidized combine harvesters, particularly along gender lines. As a result of the program, self-employment in agriculture increases by 5.3 percentage points; men shift from wage labor to own-account farm work linked to mechanized operations. Female self-employment in agriculture declines by 2.6 percentage points; overall female employment probability falls by 1.8 percentage points. Unlike men, women do not transition into non-agricultural employment, indicating limited capacity to absorb displaced female workers. Among those who remain self-employed, women increase their time allocation substantially—suggesting that while fewer women participate, those who do work more hours, likely in livestock and fisheries. Foreign migration increases by 6.1 percentage points in high-mechanization areas, suggesting households use freed labor for overseas opportunities.

Suggested Citation

  • Mahzab, Moogdho & Bakhtiar, M. Mehrab & Karim, Md. Aminul & Quisumbing, Agnes R. & Roy, Shalini, 2025. "Labor market and gender impacts of agricultural mechanization: Evidence from Bangladesh's combine harvester subsidy program," Project notes 178946, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:prnote:178946
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    References listed on IDEAS

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    1. Md. Hayder Khan Sujan & Mou Rani Sarker & Md Abdur Rouf Sarkar & Monira Sultana & Md. Sadique Rahman & Sharif Ahammad & Maruf Khan, 2025. "Harnessing Rice Combine Harvester Adoption for Sustainable Agriculture in the Haor (Wetland) Ecosystem of Bangladesh," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 69(4), pages 836-854, October.
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    5. Ma, Wanglin & Zhou, Xiaoshi & Boansi, David & Horlu, Godwin Seyram Agbemavor & Owusu, Victor, 2024. "Adoption and intensity of agricultural mechanization and their impact on non-farm employment of rural women," World Development, Elsevier, vol. 173(C).
    6. Bakhtiar, M. Mehrab & Mahzab, Moogdho & Karim, Md. Aminul & Shamma, Raisa & Belton, Ben & Talukder, Md. Ruhul Amin & Kabir, Razin & Aravindakshan, Sreejith & Krupnik, Timothy J. & Ahmed, Akhter, 2025. "Agricultural mechanization policy in Bangladesh: An assessment of the phase III support program and recommendations for reform," IFPRI working papers 1, International Food Policy Research Institute (IFPRI).
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