Productivity gains and work conditions in coercive labor markets: Experimental evidence from the Bangladesh brick sector
Year: 2026
Type: article
Study design: Clinical Trial
Abstract: Productivity growth in competitive labor markets can improve worker welfare over time through higher wages or better conditions, but it is unclear if productivity gains benefit workers in coercive labor markets (where force or threats shape employment). We examine this issue in the Bangladesh brick sector using a randomized trial that introduced a more efficient production method. Despite large productivity improvements, we find no reduction in (high) rates of labor trafficking or child labor. These findings suggest that in the short-term, productivity growth alone may be insufficient to improve work conditions in coercive settings.
Institutions: National Bureau of Economic Research, Abdul Latif Jameel Poverty Action Lab, Stanford Medicine, Massachusetts Institute of Technology, Stanford University, The University of Western Australia, International Centre for Diarrhoeal Disease Research, University of California System, University of Michigan, Stanford Institute for Economic Policy Research, Bangladesh University of Engineering and Technology, International Food Policy Research Institute, Uppsala University
Language: English
Subfield: Development
Field: Social Sciences
Domain: Social Sciences
Open Access status: hybrid
Funder: U.S. Department of State
OpenAlex ID: W7169081381