Productivity Gains and Work Conditions in Coercive Labor Markets: Experimental Evidence from the Bangladesh Brick Sector

Grant Miller, Debashish Biswas, Aprajit Mahajan, Kimberly Singer Babiarz, Nina R. Brooks, Jessie Brunner, Sania Ashraf, Jack Shane, Alvise Scarabosio, Sameer Maithel, Shoeb Ahmed, Moogdho Mahzab, Mohammad Rofi Uddin, Mahbubur Rahman and Stephen P. Luby

No 32829, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Productivity growth is central to theories of economic development and can improve worker welfare through higher wages or better conditions. While this may hold in competitive labor markets, it is unclear if productivity gains benefit workers in coercive labor markets, where force or threats shape employment. We examine this issue in the Bangladesh brick sector using a randomized trial that introduced a more efficient production method. Despite large productivity improvements, we find no reduction in (high) rates of labor trafficking or child labor. These findings suggest that productivity growth alone may be insufficient to improve work conditions in coercive settings.

JEL-codes: J28 J39 J46 J49 J59 J81 J83 O17 O53 (search for similar items in EconPapers)
Date: 2024-08
New Economics Papers: this item is included in nep-exp, nep-hrm and nep-lma
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