June 2024

IZA DP No. 17106: Employment Booms and Infant Health: Evidence from the Ready-Made Garment Sector in Bangladesh

In this paper, I estimate the inter-generational health impact of maternal employment opportunities using evidence from the ready-made garment industry in Bangladesh. This industry was exposed to a trade liberalization policy in 2005, which generated spatial and temporal variation in the establishment of garment factories and therefore, potential employment opportunities for women. Using a difference-in-difference strategy, I find that the expansion of this sector improved the probability of neonatal survival for children who are born in areas that experience higher growth in employment opportunities post trade liberalization. This is driven by the improved labor market participation by mothers, enabling them to delay childbirth and improve their intra-household bargaining power.