The market for training services: a demand experiment with Bangladeshi garment factories

Macchiavello, R.ORCID logo, Rabbani, A. & Woodruff, C. (2015). The market for training services: a demand experiment with Bangladeshi garment factories. American Economic Review, 105(5), 300-304. https://doi.org/10.1257/aer.p20151079
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We marketed a training program for lower level managers (line supervisors) to large factories in the Bangladeshi ready-made garment industry. Take-up of the program (even for a free slot) was low, due to intense production pressures, fire-fighting and concerns over retention of trained workers. Take-up is quite insensitive to pricing. There was higher interest and demand in training modules aimed at improving production processes and quality, rather than human resources and social compliance. Since the program was priced close to a commercially viable rate, it might be possible to develop a market provided they could be proved to be effective.

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