COVID19 has paralysed the world over the last few months. To limit the spread of the disease, many countries adopted lockdown and social distancing measures. While these measures are seen as vital in containing the disease, they have also precipitated an unprecedented economic crisis. The crisis is hitting low- and middle-income countries (LMICs) harder on…
The Impact of COVID19 Pandemic on the Small Firms in Developing Countries
Project
The roles of information and search frictions in determining working conditions in Bangladesh’s apparel sector
The emergence of low-skill manufacturing sectors in developing countries can increase labor market opportunities and provide other economics benefits for women (Heath and Mobarak, 2015; Tanaka, 2017). But in light of the poor conditions that characterize many low-skill manufacturing sectors, some researchers have questioned whether manufacturing jobs are actually better for workers than their alternatives….
Whistleblowing and Worker Wellbeing: Evidence from Bangladesh’s Garments Sector
In many developing countries, the private sector lacks monitoring systems to provide firms with incentives for good behavior. In part, this problem is due to weak, sometimes corrupt state institutions (Dal Bó and Finan, 2016). In part, it may also be due to principal-agent problems within the firm and to limited organizational capacity (Bloom et…
Training, Financing, and Matching between Workers and Firms
Small and Medium Enterprises (SMEs) play an important role in income and employment generation in local economies, and SMEs account for a large share of businesses in low and income countries (LMICs). SMEs in LMICs are concentrated in activities which are described as unorganized or unregistered, or non-institutional. These SMEs have limited access to financial…
Growth and Formality: The Case of Bangladesh
The informal sector plays a significant role in many, if not all, low-income countries. Traditionally, as an economy grows, there would be a shift of informal workers to formal wage jobs. Yet, in recent years, many low-income countries have experienced substantial economic growth without dramatic formalisation of informal jobs. To better understand the relationship between…
Formal-Informal Labour Nexus and Bangladesh’s Growth
Event
Labour Markets in South Asia: Evidence and Policy Lessons
Project
Building Management Hierarchies for Growth in LICs
We evaluate the impact of and demand for mid-level management training in a group of garment factories in Bangladesh. Industry participants recognise that there exists a shortage of skills needed to fill lower level management positions. There are several reasons firms may fail to provide socially optimal levels of training, and the project is designed…
Reducing Extreme Poverty through Skill Training for Industry Job Placement
Bangladesh has been experiencing remarkable growth in the ready-made garments (RMG) industries for the last three decades. It has become an integral and major part of Bangladesh’s economy, which contributes 13 percent of GDP and 75 percent of export earnings. For instance, in 1983 there were some forty thousand people employed in RMG sector; since…
The Formal-Informal Labour Nexus and Growth
Although employment in low-income countries (LICs) is strikingly concentrated in the informal sector, the contribution of this sub-economy to the larger economy is not well understood. The traditional view holds that labour markets are segmented; the informal sector provides subsistence income, or a pool of surplus labour for the formal sector, and will likely disappear…