The private returns to education in rural Bangladesh
Article
Article Title | The private returns to education in rural Bangladesh |
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ERA Journal ID | 19986 |
Article Category | Article |
Authors | Mamun, Shamsul Arifeen Khan (Author), Taylor, Brad R. (Author), Nghiem, Son (Author), Rahman, Mohammad Mafizur (Author) and Khanam, Rasheda (Author) |
Journal Title | International Journal of Educational Development |
Journal Citation | 84 |
Article Number | 102424 |
Number of Pages | 8 |
Year | 2021 |
Publisher | Elsevier |
Place of Publication | United Kingdom |
ISSN | 0738-0593 |
1873-4871 | |
Digital Object Identifier (DOI) | https://doi.org/10.1016/j.ijedudev.2021.102424 |
Web Address (URL) | https://www.sciencedirect.com/science/article/pii/S0738059321000778 |
Abstract | This study estimates the private average rate of return (ARR) and internal rate of return (IRR) to education in rural Bangladesh. Using data from the Bangladesh Integrated Household Survey (BIHS) 2015, we estimate average returns using the Mincerian method and IRR using the full method, accounting for both the direct and indirect costs of schooling. To account for endogeneity and selection bias, we use parental education as an instrumental variable and apply the Heckman correction method. We find an average return of 18 %, an IRR of 12 % for tertiary education, 4.86 % for secondary, and 5.24 % for primary. In the agricultural sector specifically, however, returns to tertiary education are more in line with primary and secondary education. |
Keywords | return to education, Bangladesh, human capital, Mincerian model, instrumental variable method |
ANZSRC Field of Research 2020 | 390399. Education systems not elsewhere classified |
380104. Economics of education | |
Public Notes | Files associated with this item cannot be displayed due to copyright restrictions. |
Byline Affiliations | Ministry of Education, Bangladesh |
School of Business | |
Griffith University | |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q6611/the-private-returns-to-education-in-rural-bangladesh
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