SMU SOE Seminar (May 4, 2018, 2-3.30pm): Barriers to Labor Migration for the Rural Poor: Experimental Evidence from a Vocational Training Program in Bangladesh

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TOPIC:

BARRIERS TO LABOR MIGRATION FOR THE RURAL POOR: EXPERIMENTAL EVIDENCE FOR A VOCATIONAL TRAINING PROGRAM IN BANGLADESH

ABSTRACT Vocational training programs aimed at rapidly growing sectors have the potential to reduce skill gaps as well as improve income and employment possibilities. Such programs have often been unsuccessful because they are not driven by the industry demand and market linkages. Also, they do not tackle other barriers faced by trainees, such as savings and credit constraints, and the uncertainty of migration. We introduced a training "plus" program for the apparel sector jobs offered to the poor, rural households in northern Bangladesh, where we relaxed some of these constraints in a rigorous Randomized Control Trial (RCT) setting. Analyzing the program uptake demonstrated an interesting heterogeneity, where gender-specic social barriers, as well as risk and time preferences, play in uential roles. Data from the follow-up surveys - six and eighteen months after the intervention - showed a statistically significant, persistent, and a large effect of the training program on employment when combined with an apprenticeship [on-the-job training (OJT)] or stipend component. We also found substantial income and remittance impacts, especially during the time of a seasonal shock, as well as a reduction in income poverty, both for the stipend and OJT groups. However, the rural household estimates - twelve months after the intervention - showed no impact on consumption poverty in the origin households. Keywords: Field Experiment, On-the-job Training, Bangladesh, Garment Industry, Rural, Extreme Poor JEL Classification: J62, J64, J65, O15, O18, R23 Click here to view the paper. Click here to view the CV.
		PRESENTER Abu Shonchoy New York University
		RESEARCH FIELDS Development Economics and Public Policy
		DATE: 4 May 2018 (Friday)
		TIME: 2pm - 3.30pm
		VENUE: Interactive Learning Space, Level 5 (Room 5015) School of Economics Singapore Management University 90 Stamford Road Singapore 178903

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