The roles of information and search frictions in determining working conditions in Bangladesh’s apparel sector
This study investigates to what extent information and search frictions contribute to inefficient matching between workers and firms.
Abstract
The emergence of low-skill manufacturing sectors in developing countries can increase labour market opportunities and provide other economic benefits for women. However, in light of the poor conditions that characterise many low-skill manufacturing sectors, some researchers have questioned whether manufacturing jobs are actually better for workers than their alternatives.
In this project, we experimentally investigate to what extent information and search frictions in Bangladesh’s labour market contribute to inefficient matching between workers and firms, and how these frictions interact with gender. Specifically, we implement a randomized controlled trial (RCT) with men and women who have recently begun working in Bangladesh’s garments sector. We will provide information about job characteristics (wages and working conditions), job openings, or both, and then assess the impact of treatment on outcomes such as their beliefs about working conditions and wages in the garments sector, job search activity, and employment outcomes.
This research is part of the Gender, Growth and Labour Markets in Low Income Countries programme.
Citation
Boudreau, L., Das, N., Heath, R. M. The roles of information and search frictions in determining working conditions in Bangladesh’s apparel sector. G2LM LIC Policy Brief No. 62, 2023