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Productivity Gains and Work Conditions in Coercive Labor Markets: Experimental Evidence from the Bangladesh Brick Sector

Author

Listed:
  • Grant Miller
  • Debashish Biswas
  • Aprajit Mahajan
  • Kimberly Singer Babiarz
  • Nina R. Brooks
  • Jessie Brunner
  • Sania Ashraf
  • Jack Shane
  • Alvise Scarabosio
  • Sameer Maithel
  • Shoeb Ahmed
  • Moogdho Mahzab
  • Mohammad Rofi Uddin
  • Mahbubur Rahman
  • Stephen P. Luby

Abstract

Productivity growth is central to theories of economic development and can improve worker welfare through higher wages or better conditions. While this may hold in competitive labor markets, it is unclear if productivity gains benefit workers in coercive labor markets, where force or threats shape employment. We examine this issue in the Bangladesh brick sector using a randomized trial that introduced a more efficient production method. Despite large productivity improvements, we find no reduction in (high) rates of labor trafficking or child labor. These findings suggest that productivity growth alone may be insufficient to improve work conditions in coercive settings.

Suggested Citation

  • Grant Miller & Debashish Biswas & Aprajit Mahajan & Kimberly Singer Babiarz & Nina R. Brooks & Jessie Brunner & Sania Ashraf & Jack Shane & Alvise Scarabosio & Sameer Maithel & Shoeb Ahmed & Moogdho M, 2024. "Productivity Gains and Work Conditions in Coercive Labor Markets: Experimental Evidence from the Bangladesh Brick Sector," NBER Working Papers 32829, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:32829
    Note: CH DEV LS
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    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J39 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Other
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • J49 - Labor and Demographic Economics - - Particular Labor Markets - - - Other
    • J59 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Other
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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