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Performance of Labour Market in Bangladesh: Recent Changes and Policy Implications

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Performance of Labour Market in Bangladesh: Recent Changes and Policy Implications. Rushidan Islam Rahman. December 8, 2005. Paper for presentation at the workshop on Growth and Employment, World Bank office, Dhaka. 1.1 Objectives of the study 1.2 Notes on Data

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slide1
Performance of Labour Market in Bangladesh:Recent Changes and Policy Implications

Rushidan Islam Rahman

December 8, 2005

Paper for presentation at the workshop on Growth and

Employment, World Bank office, Dhaka

slide2
1.1 Objectives of the study

1.2 Notes on Data

2. Determinants and Pattern of Unemployment & underemployment

2.1 Size of labour force and trends of labour force participation rate

2.2 Unemployment and underemployment, Open unemployment

2.3 Determinants of the magnitude of employment: cross-sectional variations

3. Quality of labour force

4. Economic Growth and Structure of Labour Market

Sector composition of labour force: 1991 to 2003

Status of employment

5. Determinants of household income

6. Earning from Paid Employment

6.1 Rural-urban wage differential

6.2 Multiple Regression on earning from paid employment

6.3 Wage trends

6.4 Wage rate and forms of labour contract in agriculture

6.5 Seasonal variation of agricultural wage

7. Gender Dimensions in an Employment Strategy

8. Vision for sectoral priorities: policy options for short-term and medium term

slide3
Table 2.1.1

LFPR in Bangladesh: 1991 to 2003

Source: LFS (various years).

slide4
Table 2.1.2

LFPR by age group: 1996 to 2003

Source: LFS, various years.

slide5
Table 2.1.3

Growth rates of labour force and employment: 1991 to 2003

(Average annual growth rate, %)

Source: LFS various years.

slide6
Table 2.2.1

Underemployment rate by location (rural-urban): 1996 to 2003

Underemployment rate (per cent)

Source: LFS various years.

slide7
Table 2.2.2

Underemployment Rate in Bangladesh: 1989 to 1996

Note: * Based on extended definition because data by usual definition is not available.

Source:BBS LFS 1999-2000.

slide8
Table 2.2.3

Extent of underemployment by sector: 2002-03 & 1999-2000

underemployment rate (per cent)

Source: LFS various years.

slide9
Table 2.2.4

Extent of underemployment by status of employment: 2002-03 & 1999-2000

underemployment rate (per cent)

Source: LFS various years.

slide12
Table 2.3.5

Determinants of hours of self employment (2003)

Dependent Variable: Log of weekly working hours for self-employed (2003)

Source: Estimated from LFS.

slide13
Table 2.3.6

Determinants of hours of employment of paid workforce (2003)

Dependent Variable: Log of weekly working hours for paid workforce (2003)

Source:

Estimated

from LFS.

slide14
Table 3.1.1

Changes in educational attainment of male and female labour force: 1996 to 2003

Source: LFS.

slide15
Table 3.1.2

Educational attainment of employed persons by sector: 2003

slide16
Table 3.1.3

Employed persons’ education by status of employment: 2003

slide17
Table 3.1.4

Education of employed men and women by location: 2003

slide18
Table 3.4.1

Unemployment rate among labour force by level of education and sex

Source: LFS.

slide19
Table 4.1.1

Distribution of employment by broad sector: 1996 to 2003

Source: LFS various years.

slide20
Table 4.1.2

GDP growth rate during 1991 to 2003

slide21
Table 4.1.3

Distribution of male and female employment by broad economic sector: 1996 to 2003

Source: LFS, 2003.

slide22
Table 4.1.4

Distribution of employed persons by industry and sex: 1995-96, 1999-2000

(Per cent)

Source: LFS various years.

slide23
Table 4.2.1

Employed person by status of employment, gender and locality

(Per cent)

Source: LFS 2003.

slide24
Table 4.2.2

Distribution of employed persons by status of employment and sex: 1996 to 2003

(Per cent)

Source: BBS: LFS, various years.

slide25
Table 4.2.5

Growth of labour force in ‘employee’ and day labourer category

Rate of growth (per cent per annum)

Source: Calculated from LFS data.

slide26
Table 4.3.1

Distribution of employment by type (formal/informal) : 1996 to 2003

(per cent)

Source: LFS various years.

slide27
Table 4.4.1

Elasticity of employment with respect to GDP growth by Sector

Source: LFS

Note: * These sub-sectors contribute an insignificant share of employment.

slide28
Table 5.2.1: Determinants of Household Income

Dependent Variable: Log of monthly average household income (2003)

Source: Estimated from BBS LFS.

slide29
Table 6.1.1

Wage Rate in Urban and Rural Areas by Sex and Sector: 2002-2003

Source: Calculated from BBS

LFS 2003 data.

* The wage rates for all urban and rural are based on weighted average.

slide30
Table 6.1.2

Wage rates in urban and rural areas by sector: 1999-2000

Source: Calculated from LFS data.

* The wage rates for all urban and rural are based on weighted average.

slide31
Table 6.2.1: Determinants of wage: 2003

Dependent Variable: Log of daily Wage for paid workers (2003)

Source: Estimated from Table 6.2.1.

slide32
Table 6.3.1

Nominal and real wage indices by sector: 1991 to 2004

Note: * (Uses industrial workers’ CPI).

Source: Economic Survey 2001, Monthly Statistical Bulletin (various issues), BBS.

slide33
Table 6.3.2

Average annual Growth Rate of Real Wage Indices

(per cent per year)

Source: Col. 3 to 5 calculated from Table 6.3.1 of the present paper.

slide34
Table 6.3.3

Changes of nominal wage in cotton textile sector

as compared to changes of CPI: 1994 to 2002

Source: BBS Statistical Yearbook, various years.

slide35
Table 6.3.4

Comparison of wage rates in Bangladesh with other South Asian Countries

Source: Col. 2 (World Bank 2003), Col. 3: Financial Express, Dhaka, 15 June 1995

slide39
Table 8.2.1

Women’s role in agriculture and manufacturing sector

Source: Calculated for LFS data.

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