The labor market impact of technological advancements: Evidence from the Green Revolution in Bangladesh

Aparna Howlader

Applied Economic Perspectives and Policy, 2025, vol. 47, issue 5, 1944-1971

Abstract: This paper investigates the labor market impacts of the Green Revolution (GR) in Bangladesh using newly digitized subdistrict‐level data from the 1970s to the 2000s. I use a panel fixed‐effects model and find heterogeneous impacts on agricultural labor markets based on the labor intensity of different rice types—Boro, Aus, and Aman. HYV adoption reduced agricultural labor share by up to 6%, with Aman displacing more labor due to mechanized transplanting, while Boro remained labor‐intensive due to irrigation needs. Despite productivity gains, there is no corresponding rise in nonagricultural employment or industrialization, and in some cases, rural unemployment increased. To address endogeneity, I use an instrumental variable based on groundwater constraints. These findings highlight the need for policies addressing labor market disruptions amid technological change.

Date: 2025
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https://doi.org/10.1002/aepp.70003

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Persistent link: https://EconPapers.repec.org/RePEc:wly:apecpp:v:47:y:2025:i:5:p:1944-1971

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