Agricultural Productivity, Hired Labor, Wages and Poverty : Evidence from Bangladesh

This paper provides evidence on the effects of agricultural productivity on wage rates, labor supply to market oriented activities, and labor allocation between own farming and wage labor in agriculture. To guide the empirical work, this paper deve...

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Main Authors:	Emran, Shahe, Shilpi, Forhad
Format:	Publications & Research
Language:	English en_US
Published:	World Bank Group, Washington, DC 2014
Subjects:	ACCESS TO MARKETS ACCOUNTING ACTIVE LABOR AGRICULTURAL DEVELOPMENT AGRICULTURAL EMPLOYMENT AGRICULTURAL GROWTH AGRICULTURAL LAND AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTIVITY AGRICULTURAL PRODUCTIVITY GROWTH AGRICULTURAL SECTOR AGRICULTURAL WAGE AGRICULTURAL WAGES AGRICULTURAL YIELDS AGRICULTURE CD CLIMATE CHANGE COMMODITY PRICE CONSTANT RETURNS TO SCALE CROP SCIENTISTS CROP YIELD DEMAND CURVE DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DIMINISHING RETURNS ECONOMETRIC ANALYSIS ECONOMIC GROWTH ECONOMICS ELASTICITY EMPLOYMENT EMPLOYMENT IN AGRICULTURE EMPLOYMENT OPPORTUNITIES EXCLUSION RESTRICTION EXPANSION OF IRRIGATION EXPENDITURE FAMILY LABOR FARM ACTIVITIES FARM PRODUCTION FIRING COSTS FOOD OUTPUT FOOD PRODUCTION GDP GENERAL EQUILIBRIUM GROWTH RATE HOUSEHOLD CONSUMPTION HOUSEHOLD INCOME HOUSEHOLD SURVEYS HOUSEHOLD WELFARE HUMAN CAPITAL INCIDENCE OF POVERTY INCOME INCOME GAINS INDUSTRIALIZATION INTERNATIONAL MARKET IRRIGATION IRRIGATION EXPANSION LABOR ALLOCATION LABOR DEMAND LABOR FORCE LABOR MARKET LABOR MARKET INDICATORS LABOR MARKET OUTCOMES LABOR MARKET RIGIDITY LABOR MARKETS LABOR REALLOCATION LABOR SUPPLY LABORERS MACROECONOMIC SHOCKS MARKET INTEGRATION MARKET WAGE MARKETING NON-FARM EMPLOYMENT NON-FARM SECTOR NORMAL GOOD OPPORTUNITY COST PER CAPITA CONSUMPTION POLITICAL ECONOMY POOR POOR HOUSEHOLDS POOR PEOPLE POOR RURAL HOUSEHOLDS POSITIVE EFFECTS POVERTY IMPACT POVERTY INCIDENCE POVERTY REDUCTION PRICE CHANGES PRODUCTION FUNCTION PRODUCTION POSSIBILITY CURVE PRODUCTIVE ASSETS PRODUCTIVITY PRODUCTIVITY GROWTH PRODUCTIVITY INCREASE PRODUCTIVITY INCREASES REAL WAGE RETURNS TO SCALE RURAL RURAL AREAS RURAL DEVELOPMENT RURAL ECONOMY RURAL INEQUALITY RURAL LABOR RURAL LABOR MARKET RURAL LABOR MARKETS RURAL POVERTY RURAL TOWNS RURAL WAGES SELF EMPLOYMENT SKILLED LABOR STRUCTURAL CHANGE SUBSTITUTE SUBSTITUTION SUPPLY CURVE SUPPLY ELASTICITY SUPPLY FUNCTION SURPLUS SURPLUS LABOR TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY UNEMPLOYED UNEMPLOYMENT UNSKILLED WORKERS UTILITY FUNCTION WAGE DATA WAGE EMPLOYMENT WAGE INCREASE WAGE INCREASES WAGE RATE WAGE RATES WAGES WAR
Online Access:	http://documents.worldbank.org/curated/en/2014/10/20270087/agricultural-productivity-hired-labor-wages-poverty-evidence-bangladesh http://hdl.handle.net/10986/20518

id	okr-10986-20518
recordtype	oai_dc
spelling	okr-10986-205182021-04-23T14:03:56Z Agricultural Productivity, Hired Labor, Wages and Poverty : Evidence from Bangladesh Emran, Shahe Shilpi, Forhad ACCESS TO MARKETS ACCOUNTING ACTIVE LABOR AGRICULTURAL DEVELOPMENT AGRICULTURAL EMPLOYMENT AGRICULTURAL GROWTH AGRICULTURAL LAND AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTIVITY AGRICULTURAL PRODUCTIVITY GROWTH AGRICULTURAL SECTOR AGRICULTURAL WAGE AGRICULTURAL WAGES AGRICULTURAL YIELDS AGRICULTURE CD CLIMATE CHANGE COMMODITY PRICE CONSTANT RETURNS TO SCALE CROP SCIENTISTS CROP YIELD DEMAND CURVE DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DIMINISHING RETURNS ECONOMETRIC ANALYSIS ECONOMIC GROWTH ECONOMICS ELASTICITY EMPLOYMENT EMPLOYMENT IN AGRICULTURE EMPLOYMENT OPPORTUNITIES EXCLUSION RESTRICTION EXPANSION OF IRRIGATION EXPENDITURE FAMILY LABOR FARM ACTIVITIES FARM PRODUCTION FIRING COSTS FOOD OUTPUT FOOD PRODUCTION GDP GENERAL EQUILIBRIUM GROWTH RATE HOUSEHOLD CONSUMPTION HOUSEHOLD INCOME HOUSEHOLD SURVEYS HOUSEHOLD WELFARE HUMAN CAPITAL INCIDENCE OF POVERTY INCOME INCOME GAINS INDUSTRIALIZATION INTERNATIONAL MARKET IRRIGATION IRRIGATION EXPANSION LABOR ALLOCATION LABOR DEMAND LABOR FORCE LABOR MARKET LABOR MARKET INDICATORS LABOR MARKET OUTCOMES LABOR MARKET RIGIDITY LABOR MARKETS LABOR REALLOCATION LABOR SUPPLY LABORERS MACROECONOMIC SHOCKS MARKET INTEGRATION MARKET WAGE MARKETING NON-FARM EMPLOYMENT NON-FARM SECTOR NORMAL GOOD OPPORTUNITY COST PER CAPITA CONSUMPTION POLITICAL ECONOMY POOR POOR HOUSEHOLDS POOR PEOPLE POOR RURAL HOUSEHOLDS POSITIVE EFFECTS POVERTY IMPACT POVERTY INCIDENCE POVERTY REDUCTION PRICE CHANGES PRODUCTION FUNCTION PRODUCTION POSSIBILITY CURVE PRODUCTIVE ASSETS PRODUCTIVITY PRODUCTIVITY GROWTH PRODUCTIVITY INCREASE PRODUCTIVITY INCREASES REAL WAGE RETURNS TO SCALE RURAL RURAL AREAS RURAL DEVELOPMENT RURAL ECONOMY RURAL INEQUALITY RURAL LABOR RURAL LABOR MARKET RURAL LABOR MARKETS RURAL POVERTY RURAL TOWNS RURAL WAGES SELF EMPLOYMENT SKILLED LABOR STRUCTURAL CHANGE SUBSTITUTE SUBSTITUTION SUPPLY CURVE SUPPLY ELASTICITY SUPPLY FUNCTION SURPLUS SURPLUS LABOR TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY UNEMPLOYED UNEMPLOYMENT UNSKILLED WORKERS UTILITY FUNCTION WAGE DATA WAGE EMPLOYMENT WAGE INCREASE WAGE INCREASES WAGE RATE WAGE RATES WAGES WAR This paper provides evidence on the effects of agricultural productivity on wage rates, labor supply to market oriented activities, and labor allocation between own farming and wage labor in agriculture. To guide the empirical work, this paper develops a general equilibrium model that underscores the role of reallocation of family labor engaged in the production of non-marketed services at home (`home production'). The model predicts positive effects of a favorable agricultural productivity shock on wages and income, but the effect on hired labor is ambiguous; it depends on the strength of reallocation of labor from home to market production by labor surplus and deficit households. Taking rainfall variations as a measure of shock to agricultural productivity, and using subdistrict level panel data from Bangladesh, this paper finds significant positive effects of a favorable rainfall shock on agricultural wages, labor supply to market work, and per capita household expenditure. The share of hired labor in contrast declines substantially in response to a favorable productivity shock, which is consistent with a case where labor-deficit households respond more than the labor-surplus ones in reallocating labor from home production. 2014-11-12T21:41:09Z 2014-11-12T21:41:09Z 2014-10 http://documents.worldbank.org/curated/en/2014/10/20270087/agricultural-productivity-hired-labor-wages-poverty-evidence-bangladesh http://hdl.handle.net/10986/20518 English en_US Policy Research Working Paper;No. 7056 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Group, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia Bangladesh
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ACCESS TO MARKETS ACCOUNTING ACTIVE LABOR AGRICULTURAL DEVELOPMENT AGRICULTURAL EMPLOYMENT AGRICULTURAL GROWTH AGRICULTURAL LAND AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTIVITY AGRICULTURAL PRODUCTIVITY GROWTH AGRICULTURAL SECTOR AGRICULTURAL WAGE AGRICULTURAL WAGES AGRICULTURAL YIELDS AGRICULTURE CD CLIMATE CHANGE COMMODITY PRICE CONSTANT RETURNS TO SCALE CROP SCIENTISTS CROP YIELD DEMAND CURVE DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DIMINISHING RETURNS ECONOMETRIC ANALYSIS ECONOMIC GROWTH ECONOMICS ELASTICITY EMPLOYMENT EMPLOYMENT IN AGRICULTURE EMPLOYMENT OPPORTUNITIES EXCLUSION RESTRICTION EXPANSION OF IRRIGATION EXPENDITURE FAMILY LABOR FARM ACTIVITIES FARM PRODUCTION FIRING COSTS FOOD OUTPUT FOOD PRODUCTION GDP GENERAL EQUILIBRIUM GROWTH RATE HOUSEHOLD CONSUMPTION HOUSEHOLD INCOME HOUSEHOLD SURVEYS HOUSEHOLD WELFARE HUMAN CAPITAL INCIDENCE OF POVERTY INCOME INCOME GAINS INDUSTRIALIZATION INTERNATIONAL MARKET IRRIGATION IRRIGATION EXPANSION LABOR ALLOCATION LABOR DEMAND LABOR FORCE LABOR MARKET LABOR MARKET INDICATORS LABOR MARKET OUTCOMES LABOR MARKET RIGIDITY LABOR MARKETS LABOR REALLOCATION LABOR SUPPLY LABORERS MACROECONOMIC SHOCKS MARKET INTEGRATION MARKET WAGE MARKETING NON-FARM EMPLOYMENT NON-FARM SECTOR NORMAL GOOD OPPORTUNITY COST PER CAPITA CONSUMPTION POLITICAL ECONOMY POOR POOR HOUSEHOLDS POOR PEOPLE POOR RURAL HOUSEHOLDS POSITIVE EFFECTS POVERTY IMPACT POVERTY INCIDENCE POVERTY REDUCTION PRICE CHANGES PRODUCTION FUNCTION PRODUCTION POSSIBILITY CURVE PRODUCTIVE ASSETS PRODUCTIVITY PRODUCTIVITY GROWTH PRODUCTIVITY INCREASE PRODUCTIVITY INCREASES REAL WAGE RETURNS TO SCALE RURAL RURAL AREAS RURAL DEVELOPMENT RURAL ECONOMY RURAL INEQUALITY RURAL LABOR RURAL LABOR MARKET RURAL LABOR MARKETS RURAL POVERTY RURAL TOWNS RURAL WAGES SELF EMPLOYMENT SKILLED LABOR STRUCTURAL CHANGE SUBSTITUTE SUBSTITUTION SUPPLY CURVE SUPPLY ELASTICITY SUPPLY FUNCTION SURPLUS SURPLUS LABOR TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY UNEMPLOYED UNEMPLOYMENT UNSKILLED WORKERS UTILITY FUNCTION WAGE DATA WAGE EMPLOYMENT WAGE INCREASE WAGE INCREASES WAGE RATE WAGE RATES WAGES WAR
spellingShingle	ACCESS TO MARKETS ACCOUNTING ACTIVE LABOR AGRICULTURAL DEVELOPMENT AGRICULTURAL EMPLOYMENT AGRICULTURAL GROWTH AGRICULTURAL LAND AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTIVITY AGRICULTURAL PRODUCTIVITY GROWTH AGRICULTURAL SECTOR AGRICULTURAL WAGE AGRICULTURAL WAGES AGRICULTURAL YIELDS AGRICULTURE CD CLIMATE CHANGE COMMODITY PRICE CONSTANT RETURNS TO SCALE CROP SCIENTISTS CROP YIELD DEMAND CURVE DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DIMINISHING RETURNS ECONOMETRIC ANALYSIS ECONOMIC GROWTH ECONOMICS ELASTICITY EMPLOYMENT EMPLOYMENT IN AGRICULTURE EMPLOYMENT OPPORTUNITIES EXCLUSION RESTRICTION EXPANSION OF IRRIGATION EXPENDITURE FAMILY LABOR FARM ACTIVITIES FARM PRODUCTION FIRING COSTS FOOD OUTPUT FOOD PRODUCTION GDP GENERAL EQUILIBRIUM GROWTH RATE HOUSEHOLD CONSUMPTION HOUSEHOLD INCOME HOUSEHOLD SURVEYS HOUSEHOLD WELFARE HUMAN CAPITAL INCIDENCE OF POVERTY INCOME INCOME GAINS INDUSTRIALIZATION INTERNATIONAL MARKET IRRIGATION IRRIGATION EXPANSION LABOR ALLOCATION LABOR DEMAND LABOR FORCE LABOR MARKET LABOR MARKET INDICATORS LABOR MARKET OUTCOMES LABOR MARKET RIGIDITY LABOR MARKETS LABOR REALLOCATION LABOR SUPPLY LABORERS MACROECONOMIC SHOCKS MARKET INTEGRATION MARKET WAGE MARKETING NON-FARM EMPLOYMENT NON-FARM SECTOR NORMAL GOOD OPPORTUNITY COST PER CAPITA CONSUMPTION POLITICAL ECONOMY POOR POOR HOUSEHOLDS POOR PEOPLE POOR RURAL HOUSEHOLDS POSITIVE EFFECTS POVERTY IMPACT POVERTY INCIDENCE POVERTY REDUCTION PRICE CHANGES PRODUCTION FUNCTION PRODUCTION POSSIBILITY CURVE PRODUCTIVE ASSETS PRODUCTIVITY PRODUCTIVITY GROWTH PRODUCTIVITY INCREASE PRODUCTIVITY INCREASES REAL WAGE RETURNS TO SCALE RURAL RURAL AREAS RURAL DEVELOPMENT RURAL ECONOMY RURAL INEQUALITY RURAL LABOR RURAL LABOR MARKET RURAL LABOR MARKETS RURAL POVERTY RURAL TOWNS RURAL WAGES SELF EMPLOYMENT SKILLED LABOR STRUCTURAL CHANGE SUBSTITUTE SUBSTITUTION SUPPLY CURVE SUPPLY ELASTICITY SUPPLY FUNCTION SURPLUS SURPLUS LABOR TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY UNEMPLOYED UNEMPLOYMENT UNSKILLED WORKERS UTILITY FUNCTION WAGE DATA WAGE EMPLOYMENT WAGE INCREASE WAGE INCREASES WAGE RATE WAGE RATES WAGES WAR Emran, Shahe Shilpi, Forhad Agricultural Productivity, Hired Labor, Wages and Poverty : Evidence from Bangladesh
geographic_facet	South Asia Bangladesh
relation	Policy Research Working Paper;No. 7056
description	This paper provides evidence on the effects of agricultural productivity on wage rates, labor supply to market oriented activities, and labor allocation between own farming and wage labor in agriculture. To guide the empirical work, this paper develops a general equilibrium model that underscores the role of reallocation of family labor engaged in the production of non-marketed services at home (`home production'). The model predicts positive effects of a favorable agricultural productivity shock on wages and income, but the effect on hired labor is ambiguous; it depends on the strength of reallocation of labor from home to market production by labor surplus and deficit households. Taking rainfall variations as a measure of shock to agricultural productivity, and using subdistrict level panel data from Bangladesh, this paper finds significant positive effects of a favorable rainfall shock on agricultural wages, labor supply to market work, and per capita household expenditure. The share of hired labor in contrast declines substantially in response to a favorable productivity shock, which is consistent with a case where labor-deficit households respond more than the labor-surplus ones in reallocating labor from home production.
format	Publications & Research
author	Emran, Shahe Shilpi, Forhad
author_facet	Emran, Shahe Shilpi, Forhad
author_sort	Emran, Shahe
title	Agricultural Productivity, Hired Labor, Wages and Poverty : Evidence from Bangladesh
title_short	Agricultural Productivity, Hired Labor, Wages and Poverty : Evidence from Bangladesh
title_full	Agricultural Productivity, Hired Labor, Wages and Poverty : Evidence from Bangladesh
title_fullStr	Agricultural Productivity, Hired Labor, Wages and Poverty : Evidence from Bangladesh
title_full_unstemmed	Agricultural Productivity, Hired Labor, Wages and Poverty : Evidence from Bangladesh
title_sort	agricultural productivity, hired labor, wages and poverty : evidence from bangladesh
publisher	World Bank Group, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2014/10/20270087/agricultural-productivity-hired-labor-wages-poverty-evidence-bangladesh http://hdl.handle.net/10986/20518
_version_	1764445582209843200

Agricultural Productivity, Hired Labor, Wages and Poverty : Evidence from Bangladesh

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