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A Business Case for Human Rights at Work? Experimental Evidence on Labor Trafficking and Child Labor at Brick Kilns in Bangladesh

Author

Listed:
  • Grant Miller
  • Debashish Biswas
  • Aprajit Mahajan
  • Kimberly Singer Babiarz
  • Nina R. Brooks
  • Jessie Brunner
  • Sania Ashraf
  • Jack Shane
  • Sameer Maithel
  • Shoeb Ahmed
  • Moogdho Mahzab
  • Mohammad Rofi Uddin
  • Mahbubur Rahman
  • Stephen P. Luby
Abstract
Globally, coercive labor (i.e., forced, bonded, and/or trafficked labor) and child labor are disproportionately prevalent in environments with weak regulatory enforcement and state capacity. Effective strategies for addressing them may therefore need to align with the private incentives of business owners, not relying on government action alone. Recognizing this, we test a ‘business case’ for improving work conditions and promoting human rights using a randomized controlled trial across nearly 300 brick kilns in Bangladesh. Among study kilns, rates of coercive and child labor are high: about 50% of sampled workers are trafficked, and about 70% of kilns use child labor. Our experiment introduced a production method that increased kiln productivity and revenue, and we test if these productivity gains in turn increase worker “compensation” (including better work conditions). Because adoption of the method requires important changes in worker routines, we also test if providing information to kiln owners about positively incentivizing workers to enhance adoption (and hence business revenue) can lead to better work conditions. We find no evidence that productivity gains alone reduced labor trafficking or child labor, but adding the information intervention reduced child labor by 25-30% without reducing revenue or increasing costs.

Suggested Citation

  • Grant Miller & Debashish Biswas & Aprajit Mahajan & Kimberly Singer Babiarz & Nina R. Brooks & Jessie Brunner & Sania Ashraf & Jack Shane & Sameer Maithel & Shoeb Ahmed & Moogdho Mahzab & Mohammad Rof, 2024. "A Business Case for Human Rights at Work? Experimental Evidence on Labor Trafficking and Child Labor at Brick Kilns in Bangladesh," NBER Working Papers 32829, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:32829
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    More about this item

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J39 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Other
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • J49 - Labor and Demographic Economics - - Particular Labor Markets - - - Other
    • J59 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Other
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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