This study examines the labour use pattern and its determinants in rural Bangladesh. Based on a year-long weekly survey of selected households in two areas in Bangladesh, the study finds, inter alia, that about half the potential labour time in the rural area remains unutilised in economic activities; a large part of the unemployed time is accounted for by females and child labour. The study examines variations in labour use over seasons by sex and by household categories. A stabilising influence of non-agricultural employment on total employment is noted. Contrary to the normal expectations, however, the new seed-fertiliser-water technology is found to cause greater fluctuations in both agricultural and non-agricultural labour use over time. A regression analysis of the determinants of total labour use shows a negative influence of both ownership and education variables on labour use. Education is however seen to be positively associated with non-agricultural labour use. The study also examines some conceptual and definitional problems in the measurement of labour force and labour time.

This beneficiaries of Statutory Rationing are an elitist lot. They have on average 15 years of urban residence behind them, four-fifths having secure jobs in coveted Governmental or other public sector. Per capita income of typical SR beneficiary household during 1984/85 was estimated (in a companion paper) as significantly in excess of the corresponding figure for the average urban household. It is not surprising that this lot is not overly protective of each and every aspect of their entitlements under SR. For example, only 59% of full ration entitlement of an average beneficiary household are utilised. While not overly protective, household’s attitude to SR foodgrains is nevertheless informed by economic discretion. This is because underutilisation is not so much due to irregular lifting as to partial lifting. SR is taken advantage of on the strength of shrewd calculation of relative prices between the ration and market regime. Between 12 and 13% of the total allotment— or somewhat over 20% of what’s lifted— is resold, presumably for gain. The hallmark of a rationing system in a poor country ought to lie in the foodstress characteristics of those aided, not in their ability to take discretionary advantage of it. For, if rationing becomes virtually an extension of the market regime, the distinction is not worth making in practice. SR should in such a case be eliminated. It is befitting, although somewhat belated, that all subsidies on SR will be eliminated by 1989.

Taxes account for more than 80 per cent of total internal resources generated in Bangladesh. Indirect taxes contribute more than 75 per cent towards total tax yield and taxes on import more than 50 per cent. The overall tax structure is in general inelastic with respect to national income. Tax effort of Bangladesh is poor compared to other selected countries of the world and is dependent on foreign assistance.