Abstract

This study documents the labor market outcomes and time-use patterns of women in urban Bangladesh. Using survey data collected in 2018 in low-income neighborhoods of Dhaka, the paper finds that women with children aged 0–5 years have lower likelihood of labor market participation, lower likelihood of working, and lower likelihood of being an earner, compared to women with no children and women with children aged 6 years or older. While this motherhood penalty affects all mothers, those who have young children but have no access to childcare support face the largest penalty. Time-use patterns confirm these findings, indicating that mothers of young children with no access to childcare spend less time on market work, more time on unpaid work, and less time on leisure or other activities. In addition, they are more likely to perform childcare as a secondary activity along with other paid and unpaid work, which may have implications for their productivity and the quality of care provided to children. The paper proposes entry points to ease the double burden of paid and unpaid care work on mothers in urban areas, where the availability and affordability of formal childcare services is low, and community-based or other informal care arrangements are not common.

Highlights

  • Women’s participation in the economy of Bangladesh has increased steadily since the country’s independence

  • In addition to constraining economic growth, evidence suggests that female labor force participation could result in greater investments in children’s education and health, poverty reduction, and overall improvements in household well-being, as well as promoting women’s voice and empowerment

  • This paper aimed to address this gap using a unique dataset from the slums and low-income neighborhoods of Dhaka, Bangladesh’s largest city

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Summary

Introduction

Women’s participation in the economy of Bangladesh has increased steadily since the country’s independence. Female labor force participation (FLFP) grew from just 4 percent in 1974 to 8 percent in 1984, before jumping to 24 percent in 2000. This trend has continued over the past two decades, partly attributable to a ready-made garment sector that accounts for 80 percent of total export earnings and employs 4.4 million people, including more than 3 million women (Fathi 2019, World Bank 2012a).. At 36 percent in 2017, FLFP in Bangladesh is still below the world average of 47 percent (World Bank 2020). FLFP has consistently been lower in urban areas than in rural areas and has declined in recent years despite economic growth and increases in women’s education. Between 2010 and 2017, urban FLFP fell from 34.5 to 30.8 percent, while rural FLFP increased from 36.4 to 38.5 percent (BBS 2018)

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