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                  enGender Impact: The World Bank’s Gender Impact Evaluation Database



  Does Demand or Supply Constrain Investments in Education? Evidence from Garment
                            Sector Jobs in Bangladesh
      Author(s)            Rachel Heath and A. Mushfiq Mobarak
      Contact              rmheath@uw.edu

      Country              Bangladesh

  Organizing Theme         Education and Skills, Economic Opportunities and Access to Assets

       Status              Completed

Intervention Category      Factories

       Sector              Education
                           We study the effects of explosive growth in the ready-made garments industry in
                           Bangladesh (which offers employment opportunities for women) on young girls' school
                           enrollment. A triple difference identification strategy compares girls' enrollment to
                           locations not as exposed to factories, over time as the sector grows, and relative to
                           enrollment decisions of male siblings. We find statistically and quantitatively significant
      Abstract
                           increases in the enrollment of 5-10 year old girls. In contrast, a roughly simultaneous
                           supply-side intervention (a female schooling subsidy) - also evaluated through another
                           triple difference- does not have as significant an effect on enrollment. Research on
                           education policy has had a stronger focus on improving the quantity and quality of
                           educational inputs, but in this context, demand plays a key role in enrollment decisions.
 Gender Connection         Gender Focused Intervention

  Gender Outcomes          Female school attendance, school enrollment

     IE Design             Difference in Difference in Difference
                           This study analyzes the impact of two interventions. One is the female stipend program,
                           which provides a monthly stipend to female students in rural areas who meet certain
    Intervention
                           conditions. The second intervention is the garment business in Bangladesh which has
                           grown quite rapidly. Approximately 80% of Bangladeshi garment workers are female.
                           Garment Factories in Bangladesh started to arise in the early 1980s. The FSP began in
 Intervention Period
                           1991.
  Sample population        1395 households from 60 villages in four sub-districts of Bangladesh.
                           For garment jobs, individuals living close to a factory are compared to those who do not
Comparison conditions      live near a factory. Also, recent factory growth would lead some families to have children
                           who were born both before and after a factory.
   Unit of analysis        Individual Level

  Evaluation Period        2009




   Last updated: 14 August 2013                                                                        1
                   enGender Impact: The World Bank’s Gender Impact Evaluation Database


                            The arrival of garment jobs increases schooling for younger girls only. A 10% increase in
                            garment jobs leads to a 1.4% increase in the probability that a 5 year old is in school. This is
        Results
                            zero average effect for older girls. Additionally, the Female Stipend Program had negligible
                            effects on female school enrollment.
Primary study limitations

    Funding Source
                            Heath, R., Mobarak, A., (2012) "Does Demand or Supply Constrain Investment in
      Reference(s)
                            Education? Evidence from Garment Sector Jobs in Bangladesh"
    Link to Studies
                            http://faculty.washington.edu/rmheath/garments%20Heath%20Mobarak.pdf
       Microdata




    Last updated: 14 August 2013                                                                         2