Public Education Spending and Income Inequality in Bangladesh

Abstract

Abstract-The aim of the article is to analyse the effects of public education and education spending of education on income distribution in Bangladesh. It follows the benefit incidence analysis (BIA) method using secondary data of 2010. As a result of public education spending, inequality decreases in Bangladesh. However, the rich people seem to be benefited more from each level of education particularly the high income group receives about 50% benefit from the public spending. Although the target of Bangladesh government is to reduce poverty and providing benefits to the poor, they are not ultimate beneficiaries. It demands to redesign the policy to set up more educational institutions in rural areas, special programmes like scholarship systems, loan system should be opened up for the poor income groups.Index Terms-Benefit incidence analysis, public education spending, Bangladesh, inequality.

Education stock and its implication for income inequality: The case of Asian economies

“…The results also emphasize that increases in capital stocks, labour force, and government intervention lead to a decrease in income inequality by 1.11%, 0.33%, and 0.10%, respectively. The results of the government expenditure correspond to a few existing studies (Brasington, ; Karim, ). The results also repeatedly show that for every percentage increase in labor or capital, the productivity of other input increases by 0.10%, and this complies with the Solow () model (Romer, ).…”

“…results of the government expenditure correspond to a few existing studies (Brasington, 2002;Karim, 2015). The results also repeatedly show that for every percentage increase in labor or capital, the productivity of other input increases by 0.10%, and this complies with the Solow (1956) model (Romer, 2011).…”

“…Checchi (2001) suggests that an increase in government expenditure on education will lead to an increase in income inequality. This is opposed by Karim (2015), who presents a study of Bangladesh where there is a negative relationship between spending on education and income inequality. Brasington (2002) discusses another channel, that is, the spill-over impact of education on economic development.…”

“…The study also investigates the law of diminishing returns and its implications for the education and income inequality relationship, bearing in mind the specific levels of education. The effect of education on income inequality has been studied by many researchers (Arshed, Anwar, Kousar, & Bukhari, 2018;Barro, 1999;Checchi, 2001;Gregorio & Lee, 2002;Karim, 2015), but they did not discuss different levels of education and the implication of the law of diminishing returns. They also did not incorporate specific levels of education in their respective econometric models.…”

E-Government in Service Delivery and Citizen’s Satisfaction: A Case Study on Public Sectors in Bangladesh

“….. when we went to land office, many people come to us, ask to give extra money, problems and problems… (Fokrul, a farmer, owner of piece of land, Gopalpur, Tangail) Source [12] It gave great help to the students who need to go outside of their rural area to study higher education. All higher educational institutions are mainly situated either in the capital or big cities in the country [13]. In order to apply to any university of college, students used to go that particular institute and apply.…”