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Power of partnership conference: Poster: Labor markets and poverty in village economies


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Labor markets and poverty in village economies

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Power of partnership conference: Poster: Labor markets and poverty in village economies

  1. 1. Background Methods Results Conclusions LABOR MARKETS AND POVERTY IN VILLAGE ECONOMIES Research question  80% women engaged only in: maid service, casual wage labor, livestock rearing  Low hourly earnings in casual jobs  Only poor do casual jobs  Casual jobs are low paid, low in demand Poor women are in a poverty trap .With no productive assets, they can only do casual jobs which have low pay. Low pay jobs have low income and poor can’t buy productive assets. With no assets, they remain with low income and poverty Whether enabling the poorest women to take on the same work activities as the better-off women in their villages can set them on a sustainable path out of poverty? • Randomized roll out across 21,000 households in 1,309 villages covering 40 BRAC branches • 4 rounds of survey in 2007, 2009, 2011, 2014 covering 6,700 ultra poor households • Participatory wealth ranking exercise used before baseline randomization for ranking households as ultra poor, near poor, middle class, upper class • Difference-in-difference specification used to identify the impact of the Targeting the Ultra Poor (TUP) program on individual and household level outcomes 4 years after, women devote: • 217% more hours to livestock rearing • 26% fewer hours to maid services • 17% fewer hours to agriculture labor • 21% higher earnings compared to control group • 11% increase in per capita consumption expenditure • 54% increase in value of household durables • Value of assets owned is 159% larger than control • 82% increase in value of landholdings • Agriculture and maid wages are 9% and 11% higher respectively • Average benefit cost ratio of 3.2 for TUP • 22% Internal rate of return • One-time asset and skills transfers to the ultra-poor enable them to overcome barriers for accessing high-return labor activities • Enabling the poor to allocate their labor to the activities chosen by richer women may have a central role to play in eliminating extreme poverty • Ultra-poor women had idle work capacity and TUP enabled them to utilize the idle capacity through livestock rearing Reference Bandiera, O., Burgess, R., Das, N., Gulesci, S., Rasul, I. and Sulaiman, M., 2017. Labor markets and poverty in village economies. The Quarterly Journal of Economics, 132(2), pp.811-870.