What Aspects of Formality Do Workers Value? Evidence from a Choice Experiment in Bangladesh
This study uses a choice experiment among 2,000 workers in Bangladesh to elicit willingness to pay (WTP) for job attributes: a contract, termination notice, working hours, paid leave, and a pension fund. Using a stated preference method allows calculation of WTP for benefits in this setting, des...
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/428331578944574540/What-Aspects-of-Formality-Do-Workers-Value-Evidence-from-a-Choice-Experiment-in-Bangladesh http://hdl.handle.net/10986/33192 |
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okr-10986-331922022-09-20T00:13:45Z What Aspects of Formality Do Workers Value? Evidence from a Choice Experiment in Bangladesh Mahmud, Minhaj Gutierrez, Italo A. Kumar, Krishna B. Nataraj, Shanthi INFORMALITY WORKING CONDITIONS CHOICE EXPERIMENT LABOR MARKET CONTRACT TERMINATION NOTICE WORKING HOURS PAID LEAVE PENSION FUNDS EMPLOYMENT BENEFITS JOB STABILITY GENDER This study uses a choice experiment among 2,000 workers in Bangladesh to elicit willingness to pay (WTP) for job attributes: a contract, termination notice, working hours, paid leave, and a pension fund. Using a stated preference method allows calculation of WTP for benefits in this setting, despite the lack of data on worker transitions, and the fact that many workers are self-employed, which makes it difficult to use revealed preference methods. Workers highly value job stability: the average worker would be willing to forego a 27 percent increase in income to obtain a 1-year contract (relative to no contract), or to forego a 12 percent increase to obtain thirty days of termination notice. There is substantial heterogeneity in WTP by type of employment and gender: women value shorter working hours more than men, while government workers place a higher value on contracts than do private sector employees. 2020-01-16T20:20:00Z 2020-01-16T20:20:00Z 2020-01 Working Paper http://documents.worldbank.org/curated/en/428331578944574540/What-Aspects-of-Formality-Do-Workers-Value-Evidence-from-a-Choice-Experiment-in-Bangladesh http://hdl.handle.net/10986/33192 English Policy Research Working Paper;No. 9108 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia Bangladesh |
| repository_type |
Digital Repository |
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Foreign Institution |
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Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
INFORMALITY WORKING CONDITIONS CHOICE EXPERIMENT LABOR MARKET CONTRACT TERMINATION NOTICE WORKING HOURS PAID LEAVE PENSION FUNDS EMPLOYMENT BENEFITS JOB STABILITY GENDER |
| spellingShingle |
INFORMALITY WORKING CONDITIONS CHOICE EXPERIMENT LABOR MARKET CONTRACT TERMINATION NOTICE WORKING HOURS PAID LEAVE PENSION FUNDS EMPLOYMENT BENEFITS JOB STABILITY GENDER Mahmud, Minhaj Gutierrez, Italo A. Kumar, Krishna B. Nataraj, Shanthi What Aspects of Formality Do Workers Value? Evidence from a Choice Experiment in Bangladesh |
| geographic_facet |
South Asia Bangladesh |
| relation |
Policy Research Working Paper;No. 9108 |
| description |
This study uses a choice experiment among 2,000 workers
in Bangladesh to elicit willingness to pay (WTP) for job
attributes: a contract, termination notice, working hours,
paid leave, and a pension fund. Using a stated preference
method allows calculation of WTP for benefits in this setting, despite the lack of data on worker transitions, and the
fact that many workers are self-employed, which makes it
difficult to use revealed preference methods. Workers highly
value job stability: the average worker would be willing to
forego a 27 percent increase in income to obtain a 1-year
contract (relative to no contract), or to forego a 12 percent
increase to obtain thirty days of termination notice. There
is substantial heterogeneity in WTP by type of employment
and gender: women value shorter working hours more than
men, while government workers place a higher value on
contracts than do private sector employees. |
| format |
Working Paper |
| author |
Mahmud, Minhaj Gutierrez, Italo A. Kumar, Krishna B. Nataraj, Shanthi |
| author_facet |
Mahmud, Minhaj Gutierrez, Italo A. Kumar, Krishna B. Nataraj, Shanthi |
| author_sort |
Mahmud, Minhaj |
| title |
What Aspects of Formality Do Workers Value? Evidence from a Choice Experiment in Bangladesh |
| title_short |
What Aspects of Formality Do Workers Value? Evidence from a Choice Experiment in Bangladesh |
| title_full |
What Aspects of Formality Do Workers Value? Evidence from a Choice Experiment in Bangladesh |
| title_fullStr |
What Aspects of Formality Do Workers Value? Evidence from a Choice Experiment in Bangladesh |
| title_full_unstemmed |
What Aspects of Formality Do Workers Value? Evidence from a Choice Experiment in Bangladesh |
| title_sort |
what aspects of formality do workers value? evidence from a choice experiment in bangladesh |
| publisher |
World Bank, Washington, DC |
| publishDate |
2020 |
| url |
http://documents.worldbank.org/curated/en/428331578944574540/What-Aspects-of-Formality-Do-Workers-Value-Evidence-from-a-Choice-Experiment-in-Bangladesh http://hdl.handle.net/10986/33192 |
| _version_ |
1764478191520448512 |