Rising Wages in Bangladesh

28 Pages Posted: 20 Mar 2013

See all articles by Xiaobo Zhang

Xiaobo Zhang

International Food Policy Research Institute (IFPRI)

Shahidur Rashid

International Food Policy Research Institute (IFPRI)

Kaikaus Ahmad

International Food Policy Research Institute (IFPRI)

Valerie Mueller

International Food Policy Research Institute (IFPRI)

Hak Lim Lee

A member of the CGIAR Consortium - International Food Policy Research Institute (IFPRI)

Solomon Lemma

International Food Policy Research Institute (IFPRI)

Saika Belal

Cornell University

Akhter U. Ahmed

International Food Policy Research Institute (IFPRI)

Date Written: March 1, 2013

Abstract

Using data from multiple sources, we show that in Bangladesh, the increase in real wages, particularly female wages, has accelerated since the late 2000s, suggesting that the Lewis turning point (the point at which the labor market starts to shift in favor of workers) has arrived in Bangladesh. Rising wages are likely a result of a combination of more ample job opportunities in the nonfarm sector, especially in the manufacturing sector for females, and a greater amount of remittances, primarily from male workers overseas. Since human capital is the most important asset for the poor, the escalation in real wages has boosted the poor’s earnings, thereby reducing their likelihood of being poor.

Keywords: Bangladesh, South Asia, Asia, Wages, wage rates, Lewis turning point, Labor market, Industrialization, Gender, Women, Remittances

Suggested Citation

Zhang, Xiaobo and Rashid, Shahidur and Ahmad, Kaikaus and Mueller, Valerie and Lee, Hak Lim and Lemma, Solomon and Belal, Saika and Ahmed, Akhter U., Rising Wages in Bangladesh (March 1, 2013). IFPRI Discussion Paper 01249, Available at SSRN: https://ssrn.com/abstract=2235621 or http://dx.doi.org/10.2139/ssrn.2235621

Xiaobo Zhang (Contact Author)

International Food Policy Research Institute (IFPRI) ( email )

2033 K Street, NW
Washington, DC 20006
United States
202-862-5677 (Phone)
202-467-4439 (Fax)

Shahidur Rashid

International Food Policy Research Institute (IFPRI) ( email )

United States
202-862-6498 (Phone)
202-467-4439 (Fax)

HOME PAGE: http://www.ifpri.org/staffprofile/shahidur-rashid

Kaikaus Ahmad

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Valerie Mueller

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Hak Lim Lee

A member of the CGIAR Consortium - International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

HOME PAGE: http://www.ifpri.org

Solomon Lemma

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Saika Belal

Cornell University ( email )

Ithaca, NY 14853
United States

Akhter U. Ahmed

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

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