Agricultural Productivity and Non-Farm Employment : Evidence from Bangladesh
This paper provides evidence on the impacts of agricultural productivity on employment growth and structural transformation of non-farm activities. To guide the empirical work, this paper develops a general equilibrium model that emphasizes distinc...
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World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/05/26401889/agricultural-productivity-non-farm-employment-evidence-bangladesh http://hdl.handle.net/10986/24520 |
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okr-10986-245202021-04-23T14:04:22Z Agricultural Productivity and Non-Farm Employment : Evidence from Bangladesh Shilpi, Forhad Emran, Shahe JOBS EMPLOYMENT AGRICULTURAL GROWTH FARM GROWTH MOTIVATION RURAL INEQUALITY ECONOMIC GROWTH ACCOUNTING PRODUCTION UTILITY FUNCTIONS SUPPLY CURVE EMPLOYMENT SHARE INFORMAL SECTOR STRUCTURAL CHANGE INCOME LABOR ALLOCATION INTEREST RATE AGRICULTURAL DEVELOPMENT TOTAL LABOR FORCE INFORMATION LABOR FORCE DOMESTIC MARKET ELASTICITY POLITICAL ECONOMY WELFARE OPTIMIZATION EFFECTS POOR PEOPLE EQUILIBRIUM VARIABLES RURAL POPULATION PRODUCTIVITY INCREASE MEASURES ACTIVE LABOR POVERTY REDUCTION AGRICULTURAL WAGE DEVELOPMENT DISAGGREGATED ANALYSIS EMPLOYMENT LEVEL DOMESTIC WORKERS AGRICULTURAL PRODUCTIVITY GROWTH LABOR MARKET CROP YIELD TOTAL FACTOR PRODUCTIVITY PRODUCTIVITY IMPROVEMENTS RURAL HOUSEHOLD IRRIGATION EXPANSION RURAL HOUSEHOLD INCOME EMPLOYMENT LEVELS DEVELOPMENT ECONOMICS RURAL INCOME FIRING COSTS INCOME GROWTH FOOD PRICE FARM EMPLOYMENT PRODUCTIVITY NON-FARM EMPLOYMENT EXTERNALITIES INDUSTRIALIZATION UNEMPLOYED AGRICULTURAL WAGES EMPLOYMENT COMPOSITION MARKETS ORGANIZATIONS HOUSEHOLD INCOME ECONOMIC CENSUSES FARM WORKERS LABOR TOTAL EMPLOYMENT UTILITY RURAL VILLAGES FARM SECTOR EXPORT MARKET FOOD PRODUCTION UNEMPLOYMENT CROP YIELDS LABOR COST PRODUCTIVITY GROWTH CONSUMPTION GENERAL EQUILIBRIUM HUMAN CAPITAL OPPORTUNITY COST EMPLOYMENT INFORMATION WORKERS WAGES POLICIES EMPLOYMENT SITUATION CLIMATE CHANGE DOMESTIC MARKETS REAL WAGE PRODUCTIVITY INCREASES LABOR DEMAND PRODUCTION FUNCTIONS DIVISION OF LABOR FARM ACTIVITIES DEMAND UTILITY FUNCTION AGRICULTURAL EMPLOYMENT AGRICULTURAL SECTOR RURAL ECONOMY ECONOMY AGRICULTURE CONSUMERS EMPLOYMENT GROWTH RURAL RURAL TOWNS MEASUREMENT WAGE RATE CROP SCIENTISTS LABOR MOBILITY PRODUCTION FUNCTION ECONOMICS EMPLOYMENT IN AGRICULTURE AGRICULTURAL YIELDS MACROECONOMIC SHOCKS TRADE GDP GOODS THEORY GROWTH RATE INTERNATIONAL MARKET INVESTMENT MARKET EQUILIBRIUM IRRIGATION RISK EXPANSION OF IRRIGATION RURAL AREAS POVERTY SUPPLY INCIDENCE OF POVERTY LABOR SUPPLY AGRICULTURAL PRODUCTIVITY INFORMAL EMPLOYMENT POOR FOOD PROCESSING LABOR MARKETS OUTCOMES WATER FOR IRRIGATION PRICES LABOR REGULATIONS LABOR MIGRATION MARKET WAGE NON-FARM SECTOR DEVELOPMENT POLICY INEQUALITY EXCLUSION RESTRICTION EMPLOYEES This paper provides evidence on the impacts of agricultural productivity on employment growth and structural transformation of non-farm activities. To guide the empirical work, this paper develops a general equilibrium model that emphasizes distinctions among non-farm activities in terms of tradable-non-tradable and the formal-informal characteristics. The model shows that when a significant portion of village income is spent on town/urban goods, restricting empirical analysis to the village sample leads to underestimation of agriculture's role in employment growth and transformation of non-farm activities. Using rainfall as an instrument for agricultural productivity, empirical analysis finds a significant positive effect of agricultural productivity growth on growth of informal (small-scale) manufacturing and skilled services employment, mainly in education and health services. For formal employment, the effect of agricultural productivity growth on employment is found to be largest in the samples that include urban areas and rural towns compared with rural areas alone. Agricultural productivity growth is found to induce structural transformation within the services sector with employment in formal/skilled services growing at a faster pace than that of low skilled services. 2016-06-14T19:30:43Z 2016-06-14T19:30:43Z 2016-05 Working Paper http://documents.worldbank.org/curated/en/2016/05/26401889/agricultural-productivity-non-farm-employment-evidence-bangladesh http://hdl.handle.net/10986/24520 English en_US Policy Research Working Paper;No. 7685 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia Bangladesh |
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Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
JOBS EMPLOYMENT AGRICULTURAL GROWTH FARM GROWTH MOTIVATION RURAL INEQUALITY ECONOMIC GROWTH ACCOUNTING PRODUCTION UTILITY FUNCTIONS SUPPLY CURVE EMPLOYMENT SHARE INFORMAL SECTOR STRUCTURAL CHANGE INCOME LABOR ALLOCATION INTEREST RATE AGRICULTURAL DEVELOPMENT TOTAL LABOR FORCE INFORMATION LABOR FORCE DOMESTIC MARKET ELASTICITY POLITICAL ECONOMY WELFARE OPTIMIZATION EFFECTS POOR PEOPLE EQUILIBRIUM VARIABLES RURAL POPULATION PRODUCTIVITY INCREASE MEASURES ACTIVE LABOR POVERTY REDUCTION AGRICULTURAL WAGE DEVELOPMENT DISAGGREGATED ANALYSIS EMPLOYMENT LEVEL DOMESTIC WORKERS AGRICULTURAL PRODUCTIVITY GROWTH LABOR MARKET CROP YIELD TOTAL FACTOR PRODUCTIVITY PRODUCTIVITY IMPROVEMENTS RURAL HOUSEHOLD IRRIGATION EXPANSION RURAL HOUSEHOLD INCOME EMPLOYMENT LEVELS DEVELOPMENT ECONOMICS RURAL INCOME FIRING COSTS INCOME GROWTH FOOD PRICE FARM EMPLOYMENT PRODUCTIVITY NON-FARM EMPLOYMENT EXTERNALITIES INDUSTRIALIZATION UNEMPLOYED AGRICULTURAL WAGES EMPLOYMENT COMPOSITION MARKETS ORGANIZATIONS HOUSEHOLD INCOME ECONOMIC CENSUSES FARM WORKERS LABOR TOTAL EMPLOYMENT UTILITY RURAL VILLAGES FARM SECTOR EXPORT MARKET FOOD PRODUCTION UNEMPLOYMENT CROP YIELDS LABOR COST PRODUCTIVITY GROWTH CONSUMPTION GENERAL EQUILIBRIUM HUMAN CAPITAL OPPORTUNITY COST EMPLOYMENT INFORMATION WORKERS WAGES POLICIES EMPLOYMENT SITUATION CLIMATE CHANGE DOMESTIC MARKETS REAL WAGE PRODUCTIVITY INCREASES LABOR DEMAND PRODUCTION FUNCTIONS DIVISION OF LABOR FARM ACTIVITIES DEMAND UTILITY FUNCTION AGRICULTURAL EMPLOYMENT AGRICULTURAL SECTOR RURAL ECONOMY ECONOMY AGRICULTURE CONSUMERS EMPLOYMENT GROWTH RURAL RURAL TOWNS MEASUREMENT WAGE RATE CROP SCIENTISTS LABOR MOBILITY PRODUCTION FUNCTION ECONOMICS EMPLOYMENT IN AGRICULTURE AGRICULTURAL YIELDS MACROECONOMIC SHOCKS TRADE GDP GOODS THEORY GROWTH RATE INTERNATIONAL MARKET INVESTMENT MARKET EQUILIBRIUM IRRIGATION RISK EXPANSION OF IRRIGATION RURAL AREAS POVERTY SUPPLY INCIDENCE OF POVERTY LABOR SUPPLY AGRICULTURAL PRODUCTIVITY INFORMAL EMPLOYMENT POOR FOOD PROCESSING LABOR MARKETS OUTCOMES WATER FOR IRRIGATION PRICES LABOR REGULATIONS LABOR MIGRATION MARKET WAGE NON-FARM SECTOR DEVELOPMENT POLICY INEQUALITY EXCLUSION RESTRICTION EMPLOYEES |
| spellingShingle |
JOBS EMPLOYMENT AGRICULTURAL GROWTH FARM GROWTH MOTIVATION RURAL INEQUALITY ECONOMIC GROWTH ACCOUNTING PRODUCTION UTILITY FUNCTIONS SUPPLY CURVE EMPLOYMENT SHARE INFORMAL SECTOR STRUCTURAL CHANGE INCOME LABOR ALLOCATION INTEREST RATE AGRICULTURAL DEVELOPMENT TOTAL LABOR FORCE INFORMATION LABOR FORCE DOMESTIC MARKET ELASTICITY POLITICAL ECONOMY WELFARE OPTIMIZATION EFFECTS POOR PEOPLE EQUILIBRIUM VARIABLES RURAL POPULATION PRODUCTIVITY INCREASE MEASURES ACTIVE LABOR POVERTY REDUCTION AGRICULTURAL WAGE DEVELOPMENT DISAGGREGATED ANALYSIS EMPLOYMENT LEVEL DOMESTIC WORKERS AGRICULTURAL PRODUCTIVITY GROWTH LABOR MARKET CROP YIELD TOTAL FACTOR PRODUCTIVITY PRODUCTIVITY IMPROVEMENTS RURAL HOUSEHOLD IRRIGATION EXPANSION RURAL HOUSEHOLD INCOME EMPLOYMENT LEVELS DEVELOPMENT ECONOMICS RURAL INCOME FIRING COSTS INCOME GROWTH FOOD PRICE FARM EMPLOYMENT PRODUCTIVITY NON-FARM EMPLOYMENT EXTERNALITIES INDUSTRIALIZATION UNEMPLOYED AGRICULTURAL WAGES EMPLOYMENT COMPOSITION MARKETS ORGANIZATIONS HOUSEHOLD INCOME ECONOMIC CENSUSES FARM WORKERS LABOR TOTAL EMPLOYMENT UTILITY RURAL VILLAGES FARM SECTOR EXPORT MARKET FOOD PRODUCTION UNEMPLOYMENT CROP YIELDS LABOR COST PRODUCTIVITY GROWTH CONSUMPTION GENERAL EQUILIBRIUM HUMAN CAPITAL OPPORTUNITY COST EMPLOYMENT INFORMATION WORKERS WAGES POLICIES EMPLOYMENT SITUATION CLIMATE CHANGE DOMESTIC MARKETS REAL WAGE PRODUCTIVITY INCREASES LABOR DEMAND PRODUCTION FUNCTIONS DIVISION OF LABOR FARM ACTIVITIES DEMAND UTILITY FUNCTION AGRICULTURAL EMPLOYMENT AGRICULTURAL SECTOR RURAL ECONOMY ECONOMY AGRICULTURE CONSUMERS EMPLOYMENT GROWTH RURAL RURAL TOWNS MEASUREMENT WAGE RATE CROP SCIENTISTS LABOR MOBILITY PRODUCTION FUNCTION ECONOMICS EMPLOYMENT IN AGRICULTURE AGRICULTURAL YIELDS MACROECONOMIC SHOCKS TRADE GDP GOODS THEORY GROWTH RATE INTERNATIONAL MARKET INVESTMENT MARKET EQUILIBRIUM IRRIGATION RISK EXPANSION OF IRRIGATION RURAL AREAS POVERTY SUPPLY INCIDENCE OF POVERTY LABOR SUPPLY AGRICULTURAL PRODUCTIVITY INFORMAL EMPLOYMENT POOR FOOD PROCESSING LABOR MARKETS OUTCOMES WATER FOR IRRIGATION PRICES LABOR REGULATIONS LABOR MIGRATION MARKET WAGE NON-FARM SECTOR DEVELOPMENT POLICY INEQUALITY EXCLUSION RESTRICTION EMPLOYEES Shilpi, Forhad Emran, Shahe Agricultural Productivity and Non-Farm Employment : Evidence from Bangladesh |
| geographic_facet |
South Asia Bangladesh |
| relation |
Policy Research Working Paper;No. 7685 |
| description |
This paper provides evidence on the
impacts of agricultural productivity on employment growth
and structural transformation of non-farm activities. To
guide the empirical work, this paper develops a general
equilibrium model that emphasizes distinctions among
non-farm activities in terms of tradable-non-tradable and
the formal-informal characteristics. The model shows that
when a significant portion of village income is spent on
town/urban goods, restricting empirical analysis to the
village sample leads to underestimation of
agriculture's role in employment growth and
transformation of non-farm activities. Using rainfall as an
instrument for agricultural productivity, empirical analysis
finds a significant positive effect of agricultural
productivity growth on growth of informal (small-scale)
manufacturing and skilled services employment, mainly in
education and health services. For formal employment, the
effect of agricultural productivity growth on employment is
found to be largest in the samples that include urban areas
and rural towns compared with rural areas alone.
Agricultural productivity growth is found to induce
structural transformation within the services sector with
employment in formal/skilled services growing at a faster
pace than that of low skilled services. |
| format |
Working Paper |
| author |
Shilpi, Forhad Emran, Shahe |
| author_facet |
Shilpi, Forhad Emran, Shahe |
| author_sort |
Shilpi, Forhad |
| title |
Agricultural Productivity and Non-Farm Employment : Evidence from Bangladesh |
| title_short |
Agricultural Productivity and Non-Farm Employment : Evidence from Bangladesh |
| title_full |
Agricultural Productivity and Non-Farm Employment : Evidence from Bangladesh |
| title_fullStr |
Agricultural Productivity and Non-Farm Employment : Evidence from Bangladesh |
| title_full_unstemmed |
Agricultural Productivity and Non-Farm Employment : Evidence from Bangladesh |
| title_sort |
agricultural productivity and non-farm employment : evidence from bangladesh |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/2016/05/26401889/agricultural-productivity-non-farm-employment-evidence-bangladesh http://hdl.handle.net/10986/24520 |
| _version_ |
1764456934780436480 |