Patterns of Informality in the Ship Breaking Industry of Bangladesh

The relationship between economic growth and formalization of industrial sectors has not been unidimensional as several studies have brought different aspects of it from diverse contexts. This paper tries to evaluate the persistence of informality in the ship breaking industry of Bangladesh by setting it against the proclaimed formality of the sector. In addition, the paper also seeks to support the argument that informal patterns of employment can persist, if not grow, within a formal system. Both qualitative and quantitative data have been collected by questionnaire survey and key informant interviews. Analysis of the findings reveal a strong presence of informality within labor market dynamics of ship breaking industry in Bangladesh while several administrative aspects of the industry remain formalized. Study findings support the notion that growth as well as institutional development cannot necessarily transform informal conditions of labor market in developing country context.