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Who is more Likely to be Underutilised in the Labour Market of Bangladesh?

Author

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  • Md. Tuhin Ahmed

    (Mawlana Bhashani Science and Technology University)

  • Omar Raad Chowdhury

    (South Asian Network On Economic Modeling)

Abstract

This paper examines the supply- and demand-side factors behind labour underutilisation in Bangladesh using the Quarterly Labour Force Survey 2022 data. A multivariate logit model was employed to analyse these factors. The study found that females and both younger and elders are more likely to face labour underutilisation. Being the household head reduces this likelihood while having children under 5 and disability increases it. The role of education and training in labour underutilisation appears to contradict the predictions of human capital theory. Rural and western region residents are more prone to underutilisation, highlighting the persistence of a dual economy. We found that individuals whose main source of family income is manufacturing or services experience lower underutilisation compared to agricultural income sources, while those relying on social protection schemes or remittances face higher underutilisation. Moreover, increased manufacturing employment and growth in non-agricultural employment in districts are associated with reduced underutilisation, indicating that structural transformation drives labour utilisation in Bangladesh.

Suggested Citation

  • Md. Tuhin Ahmed & Omar Raad Chowdhury, 2024. "Who is more Likely to be Underutilised in the Labour Market of Bangladesh?," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 67(4), pages 1015-1044, December.
    • Handle: RePEc:spr:ijlaec:v:67:y:2024:i:4:d:10.1007_s41027-024-00531-3
    DOI: 10.1007/s41027-024-00531-3
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    References listed on IDEAS

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    More about this item

    Keywords

    Labour underutilisation; Unemployment; Underemployment; Dual economy; Logit model;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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