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Free University of Bozen-Bolzano

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Location Room BZ E4.31, Universitätsplatz 1 - Piazza Università, 1, 39100 Bozen-Bolzano

Departments Press and Events

Contact Loris Vigna
loris.vigna@unibz.it

16 Feb 2023 12:30-13:30

Structural Transformation and the Demographic Transition: Evidence from Bangladesh

research seminar

Location Room BZ E4.31, Universitätsplatz 1 - Piazza Università, 1, 39100 Bozen-Bolzano

Departments Press and Events

Contact Loris Vigna
loris.vigna@unibz.it

The seminar takes place both in presence and online via teams here 

abstract: We study the effect of the demographic transition on structural transformation. To do so, we leverage the quasi-random placement of a program which reduced fertility and early-life mortality in rural Bangladesh. We use rich data that allows us to follow treated and control households 35 years later. Increased labor market and intrahousehold competition drove control households---which were relatively larger due to the program---to send workers to urban areas in search of employment in manufacturing or office work. By contrast, the program led to a rise in the share of household working hours spent in agriculture of 5 percentage points and a fall of 3 percentage points for manufacturing. Treated farmers adjusted to smaller household sizes by more intensively using labor-substituting technology, capital, and intermediate inputs.