Relational Contracting, Health Externalities, and Labor Supply in Bangladeshi Apparel Factories

Manufacturing jobs can improve women’s economic empowerment, but health issues or caretaking often drive women out of the labor force. Paid sick leave can prevent the spread of disease and keep workers in the workforce, but workers often fear retribution for taking sick leave. We propose a stratified, cluster-randomized experiment in collaboration with a large garment manufacturing firm in Bangladesh. Treated workers will receive a text message that clarifies the firm’s commitment to their health and the use of sick leave if needed. We will estimate the effects of treatment on workers’ health and job satisfaction.