Skills for Dynamism in Labour Market of Bangladesh: Assessment of Allied Factors

Transcription

1 Sklls for Dynamsm n Labour Market of Bangladesh: Assessment of Alled Factors Nobnkhor Kundu 1 Asma Banu 2 Dr. Nur Hosan Md. Arful Azm 3 Abstract Bangladesh labour market s characterzed by dynamsm as well as unsklled n all broad sectors local and global demonstratng much hope and promse. The study focused on the mportance of a very dynamc aspect of Bangladesh labour market s requred that skll development alled factors for fulltme employment. Ths analyss s partally helpful for the macroeconomc goals, although, there are defcent serous studes on labour market n Bangladesh at aggregate level. Usng cross secton data to analyzed econometrcs model, as multnomal logstc regresson model, are used and ft them to dentfy the sgnfcant nputs of skll development for underemployed and unemployed labour. Ths emprcal result suggests that log of hours of employment, whch p-value s statstcally sgnfcant, have been estmated to obtan the effect of statstcally sgnfcant coeffcent of alled factors of log of hours of employment. It mght also be found that the most sgnfcant n case of skll development tranng and access to credt for labour market n Bangladesh. Keywords: Professonal Labor Markets, Sklls, Labor Productvty JEL Classfcaton: J24, J44 I. Introducton The contemporary labour market of Bangladesh s characterzed by an ncreasng rate of labour force partcpaton and ncreases n underemployment. Ths s not an actve one to have a low rate of unemployment but one-thrd labour force s underemployment - an average Gross Domestc Product (GDP) growth of around sx percent over the last ten years especally for those n the sectors- agrculture, ndustry and servce. Among other fundamental factors, ths growth has been accompaned by labor and hours of employment, whch has rsen above fve percent per year over the last decade. 1 Assstant Professor, Department of Economcs, Comlla Unversty, Comlla-3506, Bangladesh. Phone: and e-mal: kundunobn@gmal.com. The correspondng author wshes to thank the Comlla Unversty for partally fundng the research. 2 Drector, FnExcel Lmted, House No. 4, Road No. 10, Bardhara, Dhaka e-mal: asmbanu@gmal.com 3 Assocate Professor, School of Busness Studes, Southeast Unversty, Dhaka-1213, Bangladesh, e-mal: nhmarf1@gmal.com 1

2 Economc development s expected to be assocated wth changes n the structure of employment. Acceleraton of economc growth and productvty of the labour market stuaton depend on sklled labour force. Thus, skll alled factors are mportant role n gvng access to employment opportuntes and ts measure by output elastcty of labour, that s, percentage change n margnal productvty of labour n terms of percentage change n average productvty of labour. Hendrcks (2002) found that when chooses an elastcty of substtuton between low sklled and hgh sklled workers to ft the cross-country pattern of skll prema, he s able to explan a moderate addtonal part of cross country ncome dfference. The key features of the strategy nclude need orented, mult skll and flexble tranng to meet changng needs of local employment- employment or self employment, and overseas employment. The skll composton of workers overseas has become skewed towards sem-sklled and unsklled over tme. Ths may be due to employers n foregn countres feelng that Bangladesh workers lack approprate sklls. Consderable Workers remttance for economc growth s mportant varable, whch s the second leadng amount of captal nflows n Bangladesh. Accordng to World Bank statstcs (2012), about eght mllon Bangladesh s are currently workng aboard, wth each mgrant sendng $1,672 per year on average, but n Inda, the average remttance per head s $4,843, where as for Chna t s $6,112. The reason for that the majorty of Bangladesh wage earners are unsklled labor. Skll development need for earnng wll ncrease substantally f workers could be nternally and/or externally fulltme employed wth approprate skll and tranng. Lack of Techncal Educaton and Vocatonal Tranng (TVET) s obstacles of potentalty ndustralzaton n Bangladesh, although labour supply s unlmted but there have not much sklled labour. Instead of techncal educaton and tranng, they are hopeful to get a job very soon and entered n labour market and to become a member of unemployed pool. A pror condton of growth and development s urgent requred alled factors for unsklled and sem-sklled labour. Implcaton of sklled labour force has to capable a shapng naton for a balanced economy by full employment generaton. The man challenge for the sklls development 4 system s to overcome ts nadequate orentaton to the labor market. As new areas evolve, a strategy to promote and ncrease labour n TVET s essental. The great surge n age groups requres creaton of employment opportuntes through provson of tranng for self-employment and/or employment n Small Medum Entrepreneurshp, SME (plannng commsson, 2012). Bangladesh Bank through Bankng Regulaton and Polcy Department (BRPD) crcular no.18, January 31, 2011 for SME and ts crculars ssued at dfferent tmes, have offered varous refnance schemes, to commercal banks at reduced nterest rates. Polcy gudelnes and nstructons have also been crculated to commercal Banks for ther adopton. The purpose of these schemes s to encourage Schedule Banks to accelerate growth by provdng loans to prorty specfc sectors. The specfc objectve of the study s to Emprcally test the skll developed alled factors of the labour market usng cross secton data analyss technque for the case of Bangladesh. The logstc regresson model analyss wll be done to fnd to dentfy between the hours of 4 Sklls development s understood n broad terms to mean human resources tranng and development, basc educaton, ntal tranng and lfelong learnng (ILO, 2000a). 2

3 employment and ts determnants for full employed labour of a naton. The remander of ths paper s organzed as follows. Secton- dscusses the revew of lterature, Secton- descrbes analyss of the Bangladesh labor market profle, secton-v ncludes data and methodology framework for the analytcal analyss and t also dentfes the varable consdered. Secton-v examnes and dscusses analyss of results of hours of employment. Fnally, summary and conclusons are presented n Secton-v. II. Revew of the Lterature The labour market of Bangladesh has been a surprsng defcent n researched area, due to the lack of serous studes at aggregate level. Although labour market condtons are not mentoned contnuously, Labour Force Survey (LFS) and Household Income and Expendture Survey (HIES) n Bangladesh by Bangladesh Bureau of Statstcs (BBS) are conducted ntermttently and not at regular ntervals (Chowdhury, 2010). We take the extended defnton of nternatonal labour organzaton (ILO) for consderaton of unemployment. He sad that, the ludcrous rate of about 4 percent unemployment does not convey the labour market slack n Bangladesh, estmated by the BBS followng the ILO method 5. In the absence of serous macro level studes of the ssue people make varous conjectures. At one end, noton of frctonal unemployment on BBS s 4.0 percent unemployment estmate. The LFS of BBS estmates underemployment rate by consderng all people. Ahluwala and Hussan (2004) shown that over the last 15 years, GDP growth rate has accelerated, whch resulted n growth of employment opportuntes. Chowdhury (2010) understood annual negatve a growth of underemployment lttle over 5.0% tll to About 25% of employed people n agrculture were of underemployed category n Industry and servce sectors are underemployment about 7% of the respectve employed people. The unemployment rate s only about four percent whch s consstent wth rates n other developng economes worldwde wth a slghtly hgher unemployment rate for youth. The underemployment rate s hgh and rsng from 17 percent n 2000 to 38 percent n 2003 (World Bank, 2010). Rahman (2005, 2007) provdes unemployed rate above 4 percent, underemployed rate above 10 percent and underemployment rate has declned durng recent years as a result of skll development through Techncal Tranng Centers (TTCs) an d Vocatonal Tranngs Insttutons (VTIs). Skll development may be defned as a process to acqurng and sharpenng capabltes to perform varous functons assocated wth ther present and future roles (Trpath, 2003). When people acqure sklls, they commonly also make themselves more adaptable (Booth and Snower, 1996 and ADB, 2004). Thus, adaptablty becomes crucal n order to keep the labour and captal employed and yet mantans compettveness. It not only rases the rate of return on nvestment and ncreases employablty but ensures also the mplementaton of varous development projects n the tme (O Conner and Lunat, 1999). To further t s mperatve to algn skll development wth the dynamcs of the labor market. TVET are ndspensable 5 All employment s defned as full tme plus underemployment, full tme employment as number of people workng over 35 hours per week, underemployment as number of people workng from 15 to 35 hours per week, unemployment as number of people workng less than 15 hours per week ncludng those who had no work but lookng for job (ILO). 3

4 nstruments for mprovng labour moblty, adaptablty and productvty, thus contrbutng to enhancng frms compettveness and redressng labour market mbalances (Calods, 1994). The skll level and qualty of the workforce wll thus ncreasngly provde the cuttng edge to successful competton n the global economy (ILO, 1998a). III. Bangladesh Labor Market Profle It s possble to brng lght some sgnfcant characterstcs of the labour market and ther trends from secondary data whch revew the present scenaro of total labour force, employed, under/unemployed labour n Bangladesh based report on LFS n Bangladesh by BBS. Bangladesh s LFS changed the defnton of labour force from tme to tme. The LFS 1989, and used the extended defnton 6, and , and used the usual defnton 7, that reflects the usual defnton of economc actvty followng UN system of Natonal Accountng. In the present secton, a few ndcators such as () cvlan labour force - partcpaton, () ts proporton, and () sectoral composton of employment suggest the sze and structure of the labour force over the 1989s to 2010s. It can be shown, n appendx-a.1, that Bangladesh labor force grew from 50.7 mllon n 1989 to 56.7 mllon n 2010, but n the LFS the extended defnton would yeld very hgh labour force partcpaton rate, wth usual defnton an average annual growth rate of 3.28 percent n Fgure: Trend analyss of growth rate of full employed, under/unemployed labour force 6 Extended defnton refers to any person aged 10 + years and over who was ether employed wth pay (proft) or unemployed (seekng/ avalable for job) durng the reference perod as economcally actvtes. It ncludes wthout pay (own household economc actvtes, such as, lvestock, dryng and etc.) (LFS, ). 7 Usual defnton refers to any person aged 15+ years and over who was ether employed wth pay (proft) or unemployed (seekng/ avalable for job) durng the reference perod as economcally actvtes. It excludes wthout pay (LFS, ). BBS and most of the other South Asan countres follow the usual defnton from the 2000 LFS. 4

5 To trend analyze growth rate of, from fgure, labour force, full employed, underemployed and unemployed labour s 3.28%, 5.54%, -3.08% and 5.41% durng to The unemployment rate rose tll to 1991, and ths rate gradually fallng tll to FY 2006 and rsng sharply agan n FY Among the three broad sectors- agrculture, ndustry and servcesuggest the sectoral composton of the workforce over the last two decades. The employment share of the agrculture sector ncludng forestry and fsheres had reduced substantally from 54.5 percent to 47.5 percent. Over the whole 22 year perod, unemployment people wth absolutely no work and people workng less than 15 hours per week has rsen from 0.6 mllon to 2.6 mllon representng annual growth of 5.41%. Aganst the labour force growth rate of 3.28% per annum, the unemployment declned n absolute number n the sub dvded perod.e., from to and rsng after Accordng to ILO method, underemployment scale group of labour market has gone down from about 11.4 mllon n to about 6.7 mllon n representng an annual negatve a growth of lttle over 3.0%, and the share of underemployment to total employment falls from 33% to about 12% durng the perod. Fulltme employment consstng of people who work more than 35 hours per week s the most mportant means of lvelhood for most of the people as usual defnton. In respect of share to total employment t grew from about 95.27% of 36 mllon n to about 95.4% of 56.7 mllon n that s mplyng an average annual growth of 3.28% whch moderate sgnfcant growth rate of labour force. Despte the hgh growth of fulltme employment, growth rate of unemployment at 5.41% that s lower growth rate of labour force, the man reason beng the persstence of whch s the sgnfcant underemployment. Accordng to age cut-off pont for defnng labour force, Bangladesh LFS reports of before used age 10 years and above, and after used age 15 years and above, but LFS 1995 provdes for both age cut-off ponts. As a consequence ncluson of year old persons n the cvlan labour force and due to hgh unemployed and underemployed rates n FY 1989, and For better understandng of the naton of Status n employment, as regards underemployment relatng to farm and nonfarm labour, t can be sad that underemployment s mostly concentrated n self-employment and unpad famly workers categores. It s unlkely that wage earnng people would be underemployed, evdence from earnngs of ndustral labour force and abroad labour force, and It s of nterest to note that yearly average self employed/employer annual negatve a growth of lttle over 2% that s suggest negatve trend, labour s growth was over 3%, day laborers growth was over 1.2% and unpad famly workers growth was over 5.3% durng to IV. Data and Methodology IV.1 Analytcal Framework IV.1.1 Logstc Regresson Model The advanced econometrcs models such as logstc regresson model are used for determnants of hours of employment that s full employed of a naton and ft them to dentfy the sgnfcant factor of sklls for under/unemployed labour (Kramer, 1991 and Gujarat, 2004). The reason behnd the use of logstc regresson model s that outcome varable full employment (usual 5

6 defnton) - s dchotomous n nature, such model s helpful to predct the lkelhood of factors optons for selected varables to acheve reducton under/unemployed labour n Bangladesh. Let Y denote the dchotomous endogenous varable for the th observaton. Where Y = 1, f labour force s full employed = 0, f labour force s underemployed or unemployed The lnear probablty model (LPM) was P E( Y 1 X) 1 2 X (1) Where, X s an exogenous varables and s the regresson coeffcents. Gve a notaton P E( Y 1lX) to represent the condtonal mean of Y gven X when logstc dstrbuton s used. The method s to model the response usng the logstc functon gven by For ease of exposton, we wrte (2) as 1 P E( Y 1lX) (2) ( 12 X ) 1 e 1 P 1 e z z e 1 e z (3) Where Z 1 2 X and Equaton (3) represents what s known as the, cumulatve, logstc dstrbuton functon (Kramer, 1991). It s easy to verfy that as Z ranges from to, P ranges between 0 and 1 and that P s nonlnearly related to Z (.e.,x ), thus satsfyng the two requrements 8. We have created an estmaton problem because P s nonlnear not only n X but n the s also as can be seen clearly from (2). Ths means that we cannot use the famlar OLS procedure to estmate the parameters, whch can be lnearzed shown as follows: If P, the probablty of full employed labour force, s gven by (3) then (1-P ), the probablty of underemployed or unemployed labour force s 1 1 P z 1 e (4) Therefore, we can wrte z P 1 e z e (5) z 1 P 1 e P Now s smply the odd rato n favor of full employed labour force the rato of the 1 P probablty of full employed labour force to the probablty of under/unemployed labour force. If we take the natural log of (5), we obtan a very nterestng result, namely, 8 Note that as Z e Z, tends to zero and as Z e Z, ncreases ndefntely. Recall that e=

7 L P In Z P X (6) That s, L, the log of the odds rato, s not only lnear n X, but also lnear n parameters. L s called the logt, and hence the name logt model. For the purposes of estmaton of the logt model, we wrte (6) as follows: P L In X u P 1 (7) 1 2 To estmate (7), the values of the regressand, or logt, L. Ths depends on the type data we have analyss for data at the ndvdual, or mcro, level. If we have data on ndvdual famles, OLS estmaton of (7) s nfeasble. P = 1, f a labour force s full employed and P = 0, f a labour force s under/unemployed. These values drectly nto logt, L, we obtan: L L 1 In 0 0 In 1 f a labour force s full employed f a labour force s underemployed or unemployed Obvously, these expressons are meanngless. Therefore, f we have data at the ndvdual, or mcro, level, we cannot estmate (7) by the standard OLS routne. In ths stuaton we may have to resort to the maxmum lkelhood (ML) method to estmate the parameters. Software packages E-vews-5.1 have bult-n routnes to estmate the logt model at the ndvdual level. IV.1.2 Determnants of Estmated Labour Market To estmate the model, a wdely used multple logstc regresson frameworks are taken to separate out the effects of key soco-economc factor of explanatory varables mpact on log of the hours of employment. Usng the ndvdual or mcro level data a logstc regresson model has been estmated to examne how to the probablty of beng n hours of employment (EMPH) based on determnants of estmated labour market. Dependent varables as dummy for three status of employment (=1), f labour force s full employed, otherwse underemployed or unemployed and lettng exogenous varables for hours of employment are beng hghlghted n the followng dscusson: Dependent Varable: log of hours of employment (EMPH) Explanatory Varables: Age of labour Sex of labour dummy = 1, f labour force s full employed, otherwse an underemployed or unemployed labour years, years, years & 45+ years Sex (1= Male, 0 = Female) Educaton of labour < class 5, class 6-10, class & > class 12 7

8 Years of experence Skll tranng provders < 5 years, 6-10 years, years, > 16 years Government, NGO, Assocaton & IDA No. of dependent members <4 members, 4-6 members, 7-9 members, > 10 members Amount of loan < TK. 100,000, TK. 100, ,000, TK. 300, ,000 & > TK. 500,000 Sources of borrowng Relatve/Neghbour/Frends, Mahajan, NGO & Banks Collateral for loan nothng, land and buldng, machnery and equpment, and personal assets of owner Rate of nterest annually < 10%, 10% to 15%, 16% to 20% & > 20% Vocatonal tranng dummy Furnture makng servce dummy Constructon servce dummy Lght engneerng servce dummy Electroncs servce dummy = 1, f have vocatonal tranng, otherwse = 1, f yes, otherwse = 1, f yes, otherwse = 1, f yes, otherwse = 1, f yes, otherwse The expected sgn of explanatory varables coeffcents are postve and/or negatve respectvely. The error term s assumed to be random and serally ndependent havng zero mean wth fnte varance. In order to determne the approprate technque of estmaton, the emprcal model s estmated by logstc regresson method. The drecton and the strength of between the explanatory varables and log of hours of employment varablty are determned from the sgn of the coeffcent and sgnfcance of t-statstc. Major evaluaton statstcal crtera whch are, based on statstcal theory, referred to as the McFadden R-squared (R 2 MCF), LR statstc (df) and Probablty (LR stat). IV.2 Sources of Data To analyss prmary data collect for used cross sectonal study to be consdered about alled factors for professonal labour those who have not to complete the tranng, called tranee, and those who have to complete the tranng, called traned, n partcular sectors. Professonal servces are furnture makng, constructon (mason, plumbers, and tles fttng), electroncs (moble phone servcng, electrcans) and lght engneerng (weldng, lathe machne operator). Quanttatve technque s used n the exstence of the causes and ther degree of accountablty n brngng about the sustanablty full employed optons of under/unemployed tranee and traned data at the ndvdual, or mcro, level. 8

9 The systematc samplng desgn that s used n the study s approprately performed based on the geographcal locaton and also determned the sze of sample by usng the approprate formula. The most practcal way of a 4% sample s desred, the frst tem would be selected randomly from the frst twenty-fve and thereafter every 25 th tem would automatcally be ncluded n the sample. Thus, n systematc samplng only the frst unt s selected randomly and remanng unts of the sample are selected at fxed ntervals. Moreover, t s an easer and less costly method of samplng and can be convenently used even n the case of large populatons (Kothar, 1990). The prmary data were collected from the respondents durng the tme from June to July, The survey was conducted over one hundred and twenty respondents from a partcular area Mrpur-Pallab (zone -2) n Dhaka North Cty Corporaton (DNCC), Bangladesh. A structured questonnare was prepared n the lght of the objectves of the study that was flled up by drect ntervew. All flled-up structured questonnares, appendx-a.2, were fully scrutnzed and the vald data thus collected were processed and analyzed to reach wth research objectve. V. Analyss of the Results Ths analyss begns wth an attempt to understand the relatonshp of alled factors of labour market and status of labour wth full employed, under/unemployed. Now let us nterpret the regresson results usng the data. Snce most modern statstcal packages have routnes to estmate logt models on the bass of ungrouped data. We shall estmate equatons n the logt form of the regresson results calculated by E-vews 5.1 are gven n table-1. Table-1: Results of Logstc Regresson Dependent Varable: Determnants of Hours of Employment (EMPH) Varable Coeffcent Std. Error t-statstc Prob. Constant Age of labour Sex of labour dummy (male=1) Educaton of labour Lght engneerng, servce (yes=1) Electroncs servce (yes=1) Constructon servce (yes=1) Furnture makng servce (yes=1) Years of experence Skll tranng provders No. of dependent members Sources of borrowng Amount of loan Collateral for loan Rate of nterest annually Vocatonal tranng dummy (yes=1) McFadden R-squared 0.77 LR statstc (15 df) Probablty(LR stat)

10 Each slope coeffcent n ths equaton s a partal slope coeffcent and measures the change n the estmated logt for a unt change n the value of the gven regressor, assume other regressors constant. The coeffcent of educaton s negatve and hghly sgnfcant. The negatve coeffcent reflects that most of the labors are relatvely low educated, and when a person gets more educaton they are not workng as workers n home and abroad. For the reason, hgher unemployment rate among the more educated n one hand and other hand the coeffcent of professonal servce (furnture makng, lght engneerng, constructon, and electroncs) both have postve coeffcent and hghly sgnfcant. Ths postve coeffcent reflects the relatvely hgher log of hours of employment n Bangladesh. Smlarly, years of experence has a postve mpact on growth of hours of employment n our equaton, f a year of experence ncreases by a unt, on average the estmated logt ncreases by about 1.12 unts. Amount of loan has a sgnfcant coeffcent and thus has advantage over the full employed labour. Sklled labour s better than sem/unsklled labour, later has a sgnfcant postve mpact on the logt, although statstcally the effect of rate of nterest s sgnfcant, but the coeffcent of rate of nterest s negatve. The negatve coeffcent reflects that most of the labors are relatvely lttle amount of hours of employment. The tranee or traned labour may not have suffcent sources of borrowng from relatve/neghbour/frends, mahajan, NGO (Non-Governmental Organsaton) and Banks. The coeffcent of collateral for loan s negatve and moderate sgnfcant. Collateral for loan (land and buldng, machnery and equpment, personal assets of owner) s not only obstacles most of the labour and also hghly sgnfcant rate of nterest per annum s burden of borrower. The coeffcent of sources of borrowng and collateral for loan s statstcally moderate sgnfcant mpact on growth of hours of employment. The coeffcent of skll tranng provders (Government, NGO, Assocaton and IDA) s postve and hghly sgnfcant n the equaton. Smlarly the coeffcent of vocatonal tranng dummy form (yes=1) s 2.14 means, wth other varables assume constant, that f vocatonal tranng receve ncreases by a unt, on average the estmated logt ncreases by about 2.14 unts, suggestng a postve mpact on hours of employment and statstcally hghly sgnfcant. Thus, under/unemployed labour sklled traned up to become a full employed labour, hs/her margnal productvty wll also most lkely of rsng out of sluggsh growth of productvty. However, together all the regressors have a sgnfcant mpact on the log of hours of employment, as the LR statstc s , whose p-value s about 0.00, whch s statstcally sgnfcant. Whereas the McFadden R 2 (R 2 MCF) value s 0.77, although, ths value s overplayng the mportance of goodness of ft n models, where the regressand s dchotomous. Skll development needs for earnngs wll ncrease substantally f workers could be home and/or abroad fulltme employed wth approprate sklls tranng. As we can see regresson, respect to all others regressors, results show that under/unemployed labour has a hgher probablty of beng low growth of productvty than the full employed labour. VI. Summary and Conclusons Bangladesh labour market s characterzed by dynamsm as well as unsklled n the agrculture, ndustry and servce sector home and abroad ndcatve of acceleraton of economc growth. On the unsklled aspect, under/unemployed labour s hgh and stll sgnfcant, ndustral employment s low and the proporton of day labour s qute hgh. On the dynamc aspect, 10

11 fulltme employment s slow ncreasng and self-employment s also ever ncreasng (Chowdhury, 2010), whch have elaborately dscussed n earler sectons. In respect of dfferent socal and economc ndcators, t s observed that under/unemployed labour has shown hgher performance n economc actvtes, f access to skll development alled factors. It complements our compettve advantages n the local and global economy and ts resultng economc benefts. The logstc regresson result s dffcult to predct on the bass of used only cross secton data. Ths result suggests that log of hours of employment have been estmated to obtan the effect of sgnfcant coeffcent of ts determnants. Sklls development tranng and access to credt on partcular sectors lke as furnture makng, lght engneerng, constructon, and electroncs should be ntroduced n the labour market that has much potental for economc growth n Bangladesh. It can be understood that some of the skll development factors mght be sgnfcant n becomng full/self-employed and to be resource a human captal from unemployed, whch also mght be found n case of underemployed labour as a result of absorpton of under/unemployed labour of total labour force. Ths has shown that log of hours of employment and ts skll development determnants s hghly sgnfcant correlaton n the model for full tme employment. It observed that, the potental labor whose receved any type of skll development alled factor, they are sustanng ther economc actvtes and optmzng proft. In addton, access to fnancal ncluson s the key role n generatng full employment and overcomng barrers. Ths may reveal many other ssues, whch agences and government may need to focus upon, to make vocatonal educaton and tranng for skll development n Bangladesh a success story. Ths has much mplcaton - access to skll developed alled factors can be nfluental for labour market n dynamsm and economc development. To resolve ths major challenge n Bangladesh, there are ntense efforts to mpart vocatonal sklls among the youth and ths process would be contnung for sustanable stablty. 11

12 References ADB (2004). Improvng Techncal Educaton and Vocatonal Tranng. Strateges for Asa, Asan Development Bank, Manla, Phlppnes. Ahluwala, I.J. and Z. Hussan (2004). Development Achevements and Challenges, Economc and Poltcal Weekly, September 4, No. 36. Bangladesh Bureau of Statstcs (Varous Years). Bangladesh Economc Revew, Mnstry of Fnance, Dhaka, Bangladesh. (Varous Years). Household Income Expendture Survey, GOB, Dhaka. (Varous Years): Labour Force Survey, GOB, Dhaka. (Varous Years). Statstcal Yearbook of Bangladesh, GOB, Dhaka. (Varous Years). Report on Bangladesh Census of Manufacturng Industres, GOB, Dhaka. (2012). Report of Sxth fve Year Plan, Mnstry of Plannng, GOB, Dhaka. Booth, A. L., and Snower, D. J. (1996). Acqurng Sklls: Market Falures, Ther Symptoms and Polcy Responses, Cambrdge Unversty Press, Cambrdge. Callods, F. (1994). Convergng Trends Amdst Dversty n Vocatonal Tranng Systems, Internatonal Labour Revew 13(2): Chowdhury, A.U. (2010). Dynamsm and Scleross n Bangladesh labour Market, Bangladesh journal of Poltcal economy, BEA, Volume 26(1): Gujarat, D. N. (2004). Basc Econometrcs, 4 th Edton, McGraw-Hll, New York. Hendrcks, L. (2002). How Important Is Human Captal for Development? Evdence from Immgrant Earnngs, The Amercan Economc Revew, 92(1): ILO (1998a). World Employment Report : Employablty n the Global Economy, How Tranng Matters. Internatonal Labour Organzaton, Geneva. ILO (2000a). Yearbook of Labour Statstcs 2000, Internatonal Labour Organzaton, Geneva. Kothar, C. R. (1990). Quanttatve Technques, New Second Revsed Edton, New Age Internatonal Publshers, New Delh. Kramer, J.S. (1991). The Logt Model for Economsts, Edward Arnold Publshers, London. 12

13 O Connor, D. and Lunat, M. R. (1999). Economc Openng and the Demand for Sklls n Developng Countres: A Revew of Theory and Evdence, Techncal Paper No Rahman, R. I. (2005). Performance of Labour Market n Bangladesh: Recent Changes and Polcy Implcatons, Bangladesh Insttute of Development Studes, Dhaka, Bangladesh. (2007). Labour Market n Bangladesh: Changes, Inequaltes and Challenges, Bangladesh Insttute of Development Studes, Bangladesh, Research Monograph 21. Trpath, B. D. (2003). Current Strateges and Future Approaches for HRD n Agrcultural Extenson. Paper presented n the Regonal Workshop on Operatonalsng Reforms n Agrcultural Extenson n South Asa. May 6-8, 2003, New Delh, Inda. World Bank ( 1996). Bangladesh: Labor Market Polces for Hgher Employment, World Bank, Washngton, DC. (2006). The Bangladesh Vocatonal Educaton and Tranng System: An Assessment, Human Development Unt, South Asa Regon, The World Bank, November

14 A.1: Bangladesh Labor Market Profle Major Characterstcs of LFS Cvlan Labor Force (mllon, m) Total employed (m) (full tme +underemployed) % of labour force Full tme employed (m) % of Total employed Underemployed (m) % of Total employed Total unemployed (m) % of labour force Total Employment n major occupaton (m) Agrcul, Forestry, Fsheres LFS LFS 1989 a a (0.67) 50.2 (0.13) (15.4) (-3.82) (26.6) (0.13) (-2.9) 68.3 Appendx LFS a 56.0 (1.87) 54.6 (1.75) (19.8) (-4.35) (7.52) (1.75) 34.9 (0.33) (4.37) LFS LFS b 00 b (2.61) (2.49) (7.32) (-6.44) (5.40) (2.49) (1.28) 51.1 LFS b 49.5 (4.32) 47.4 (4.30) (5.71) (-1.37) (0.94) (4.30) 23.0 (3.11) 48.5 LFS b 56.7 LFS b (2.91) (3.28) 54.1 (2.83) (3.20) (3.59) (-1.44) (4.48) 4.6 (5.54) (-3.08) (5.41) 54.1 (2.83) (3.20) 25.7 (2.34) (2.24) 47.5 Share n total Producton, Transport (11.1) (4.62) (8.39) (3.47) (5.49) Share n total Workers - sales & servce (3.84) (7.94) (2.99) (3.75) (3.57) (3.44) Share n total Professonal, Techncal (0.84) (4.39) (6.0) (7.5) (1.82) (5.11) Share n total Admn, Clercal workers (7.27) (1.45) (13.7) (-2.85) (8.33) (6.39) Share n total Not adequately defned Status n employment (percent) Self employed/employer (-3.7) (1.97) (-3.74) (-2.04) (-0.62) (-2.13) Labours (9.26) (1.13) (7.60) (-3.35) (5.03) (3.09) Day labourers (-3.2) (5.42) (7.15) (-5.02) (1.54) (1.22) Unpad famly workers (1.22) (-2.8) (-0.33) (16.2) (0.09) (5.32) Others Source: Varous labour force survey reports. Author s calculaton parentheses ndcated that growth rate and the blank n the column (-) ndcate non-avalablty of data, (-) less than 50,000. Note: a The fgures represent extended defnton of labor force at age 10 + populaton. b The fgures represents usual defnton at age 15+ populaton, but LFS 1995 provdes for both age cut-off ponts. 14

15 A.2: Survey Questonnares Sklls for Dynamsm n Labour Market of Bangladesh: Assessment of Alled Factors To be flled n an ntervew (f applcable) wth stakeholders lke: 1. Professonal servce holders lke: furnture makng, lght engneerng, constructon, electroncs, and others, 2. Traners/Servce provders, 3. Bankers, 4. Assocatons Name of worker or owner: Age: Telephone-Offce: E-mal: Address: Sex: Factory: Web-page: 1. Age Group of worker or owner: (please tck) a b c d Gender of worker or owner: (please tck) a. Male b. Female c. Others 3. How many numbers of dependent members of your famly? (please tck) a. 4 members and below b. 4-6 members c. 7-9 members d. 10 members and above 4. What s the educaton level of worker or owner? (please tck) a. prmary educaton school b. secondary educaton school c. hgher secondary educaton school/ Polytechnc Insttutes d. Graduate degree (B.A, B.Sc., Dploma) 5. Dd you offer Techncal Educaton and Vocatonal Tranng (TVET) to your skll develop? Yes=1 or No=2. If yes, who offer to tranng? (Please tck) a. Government b. Non Government Organsaton (NGO) c. Assocaton d. Internatonal Development Agency (IDA) 6. For how many years have you been workng n ths frm as a worker or owner? (Please tck) a. 1-5 years b years c years d. 16 years and above 7. In whch professon s the workng? (Please tck) a. Furnture makng b. Constructon (mason, plumbers, and tles fttng) c. Electroncs (moble phone servcng, electrcans) d. Lght engneerng (weldng, lathe machne operator) or Others (please specfy: ) 8. How much do you work hours per week? (Please tck) a. no work but lookng for job b. less than 15 hours c. 15 to 35 hours d. more than 35 hours 15

16 9. If there was a skll development fnancal scheme avalable, would t encourage your frends and relatons to undertake skll development tranng? Yes=1 or No=2 or don t know = When you had gone to tranng and/or busness, s gettng any fnancal help? Yes=1 or No=2. If yes, what was source of borrowng? (Please tck) a. Relatve/ Neghbour/ Frends b. Mahajan c. NGO d. Schedule Banks 11. How dffcult was t, to fnd a bank wllng to fnance your tranng project/ equpment/ nfrastructure? (Please tck) a.very Easy b. Easy c. very dffcult d. dffcult e. dd not provde any loan 12. How dffcult s t, to fnd NGOs/INGOs/Donor funded project wllng to fnance your tranng equpment/nfrastructure? (Please tck) a.very Easy b. Easy c. very dffcult d. dffcult e. dd not provde any loan 13. How much money gets from these sources of borrowng? (Please tck) a. TK. 100,000 and below b. TK. 100, ,000 c. TK. 300, ,000 d. TK. 500,000 and above 14. How much nterest rate to pay % annually? (Please tck) a. 10% and below b. 10% - 15% c. 16% - 20% d. 20% and above 15. Dd the loan requre collateral? Yes=1 or No=2. If yes, whch of the followng were used as collateral? (Please tck) a. Land and buldng b. Machnery and equpment (ncludng vehcles) c. Tangble assets (e.g nventory) d. Personal assets of owner (e.g house) or Others (specfy: ) 16. What was the value of the collateral requred as a percentage of the loan value? % of loan value 17. What s the total duraton of the loan (from the moment you receved the money untl the moment t must be fully repad)? years 18. Are you a member of any assocaton (e.g. Labour Unon) Yes=1 or No=2. If yes, how much do you pay annually n subscrpton fees to your assocaton? Taka 19. Have you any nsurance of you/famly members? Yes=1 or No=2. If yes, whch types of nsurances? a. Lfe nsurances b. Health nsurance c. Asset nsurances d. Others (Specfy: ) 20. If you gve your valuable opnon about skll development for labour : THANK YOU VERY MUCH FOR YOUR COOPERTION IN ANSWERING THIS QUESTIONNAIRE 16