Readymade Garments Factory

Vol. 4, No. 12

Asian Social Science

Wage Productivity and Wage Income Differential in Labor Market: Evidence from RMG Sector in Bangladesh

Md. Gazi Salah Uddin School of Business Presidency University 11A, Road: 92, Gulshan-2, Dhaka-1212, Bangladesh Email: rimsust2002@yahoo.com Abstract Labor Market outcomes in Bangladesh at different stages of industrialization need not be similar as behavioral rationality of economic agents depends on the market context. This paper examines the issues related to wage income differentials in RMG sector. In fact wage determination behavior during the last two decades did not follow one of the basic premises in the theory of labor market in economics. In general, employment and wage determined by the marginal productivity of labor in value term. Labor Market outcomes in Bangladesh at different stages of industrialization need not be similar as behavioral rationality of economic agents depends on the market context. Women are increasingly becoming visible in the productive labor force in Bangladesh. The surplus labor is expected to take in the family farms in the rural areas and in other informal enterprise. During the last two decades, rapid changes had taken place in this scenario. Women’s employment in garment factories is one of these changes. The garment sector is rapidly rising in the country since the 1980’s. The paper is based survey findings conducted among the woman’s workers of RMG industries located at Dhaka and Narayangong – the second largest hub of RMG factories in Bangladesh. The study was conducted on 200 female garment workers of 20 garment industries. This paper investigates the existing labor market and status of women workers in the context of wage discrimination based on gender, obstacles of work place environment in and outside of the industries. The study also analyzes the socio economic status of the women workers in the export-oriented industries like Ready Made Garments. In terms of social and...