In Bangladesh the reduction of population growth through declines in marital fertility levels has long been viewed as a desirable, if not essential, development objective that is amenable to policy interventions. In particular, the provision of income earning opportunities to women was believed to have an important role in influencing individual reproductive behaviour leading to the increased and sustained use of modern contraceptives. This paper addresses the question of whether participation in employment programmes allows women to alter their fertility regulating behaviour. Using a quasi-experimental design comprising of programme participating women and a comparison group of non-participants, it seeks to identify factors related to women’s work context that are important in determining contraceptive use. The paper finds that changes in women’s work context in terms of higher returns to labour, increased access to extra-family support and greater mobility outside the home are most strongly associated with the increased use of modern contraceptives among rural women residing in intervention areas. Besides, the differential impact of the institutional approaches to input delivery on fertility regulation was also indicated.