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Livelihood Challenges of RMG Workers: Exploring Scopes within the Structure of Minimum Wages and Beyond

Author

Listed:
  • Khondaker Golam Moazzem
  • Md. Arfanuzzaman

Abstract

This paper examines the livelihood issues of the workers in the readymade garments (RMG) sector of Bangladesh, and identifies the scope of determining a minimum wage that would address their requirements of a decent livelihood standard. The study observes a compositional change in workers’ household expenditure patterns, where non-food expenses have taken up the larger share. Workers of all grades were found struggling to meet their essential needs, which indirectly implies that their earnings are inadequate for spending beyond the subsistence level. The study finds that, rise in the number of family members puts pressure to manage additional costs. The poor earnings of workers are also reflected through their possession of a very limited number of household assets. The study proposes a number of changes in the structure and composition of minimum wages, such as raising of basic house rent, inclusion of childcare and education allowances, amending the transport allowance, and adding service benefits. The study proposes minimum wage for entry-level workers at BDT 10,028 (USD 119). It further recommends a number of non-wage measures to improve workers’ livelihood through community development.

Suggested Citation

  • Khondaker Golam Moazzem & Md. Arfanuzzaman, 2018. "Livelihood Challenges of RMG Workers: Exploring Scopes within the Structure of Minimum Wages and Beyond," CPD Working Paper 122, Centre for Policy Dialogue (CPD).
    • Handle: RePEc:pdb:opaper:122
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    References listed on IDEAS

    as
    1. Anker, Richard,, 2011. "Estimating a living wage : a methodological review," ILO Working Papers 994663133402676, International Labour Organization.
    2. repec:ilo:ilowps:466313 is not listed on IDEAS
    3. Du Juan & Leigh J. Paul, 2018. "Effects of Minimum Wages on Absence from Work Due to Illness," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 18(1), pages 1-23, January.
    4. Khondaker Golam Moazzem & Saifa Raz, 2014. "Minimum Wage in the RMG Sector of Bangladesh: Definition, Determination Method and Levels," CPD Working Paper 106, Centre for Policy Dialogue (CPD).
    5. Khondaker Golam Moazzem & Farzana Sehrin, 2016. "Economic Upgrading in Bangladesh’s Apparel Value Chain during the Post-MFA Period," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 17(1), pages 73-93, March.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Khondaker Golam Moazzem, 2019. "New Minimum Wage of the RMG Sector: Addressing the Issues of Non-Compliance in Implementation," CPD Working Paper 129, Centre for Policy Dialogue (CPD).
    2. Humayun Kabir & Myfanwy Maple & Md. Shahidul Islam & Kim Usher, 2022. "The Paradoxical Impacts of the Minimum Wage Implementation on Ready-made Garment (RMG) Workers: A Qualitative Study," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 65(2), pages 545-569, June.

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