Escalation of Real Wages in Bangladesh: Is it the Beginning of Structural Transformation?

Using data from multiple sources, we show that the real wages in Bangladesh, particularly in rural areas and for female workers, have accelerated in recent years. Real wage escalation is likely the result of a combination of more job opportunities in the nonfarm sector, especially in the manufacturing sector, and a greater inflow of remittances, primarily from unskilled male workers overseas. Since physical labor is the most important asset for the poor, the escalation in real wages has boosted the poor’s earnings, helping them improve their livelihood and escape poverty.