What firm characteristics determine women's employment in manufacturing? Evidence from Bangladesh

Type Journal Article - Equality, Diversity and Inclusion: An International Journal
Title What firm characteristics determine women's employment in manufacturing? Evidence from Bangladesh
Author(s)
Volume 35
Issue 2
Publication (Day/Month/Year) 2016
Page numbers 99-122
URL http://www.emeraldinsight.com/doi/abs/10.1108/EDI-07-2015-0057
Abstract
Purpose – This study investigates the principal determinants of women’s employment in the
manufacturing sector of Bangladesh using a firm-level panel data from the World Bank’s ‘Enterprise
Survey’ for the years 2007, 2011 and 2013. The paper sheds light on the demand-side factors, mainly
firm-level characteristics, which also influence this decision.
Design/methodology/approach - We estimate a fractional logit model to model a dependent variable
that is limited by zero from below and one from above.
Findings - The results indicate that firm size, whether medium or large, and firms’ export-oriented
activities, have an important impact on women’s employment in the manufacturing sector in
Bangladesh. Moreover, we find that women are significantly more likely to work in unskilled-labour
intensive industries within the manufacturing sector.
Research limitations/implications – The research is limited to Bangladesh; however, much of the
evidence presented here has implications that are relevant to policymakers in other developing
countries.
Practical implications – The study identifies factors that affect female employment, that is, where the
main constraints to increase female labour force participation. The study focuses on the demand-side
factors, which has been somewhat neglected in recent years. As such, it has practical policy
implications.
Social implications – Focusing on female employment in Bangladesh also sheds light on the nexus
between labour market opportunities and social change within a country that is characterised by extreme
patriarchy, which has wide-reaching implications.

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