The private returns to education in rural Bangladesh

Mamun, Shamsul Arifeen Khan and Taylor, Brad R. ORCID: https://orcid.org/0000-0003-4375-6206 and Nghiem, Son and Rahman, Mohammad Mafizur ORCID: https://orcid.org/0000-0002-7950-1961 and Khanam, Rasheda ORCID: https://orcid.org/0000-0003-1130-2357 (2021) The private returns to education in rural Bangladesh. International Journal of Educational Development, 84:102424. ISSN 0738-0593


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.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Permanent restricted access to Published version in accordance with the copyright policy of the publisher.
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Business (18 Jan 2021 -)
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Business (18 Jan 2021 -)
Date Deposited: 10 Jun 2021 05:29
Last Modified: 20 Oct 2021 01:41
Uncontrolled Keywords: return to education, Bangladesh, human capital, Mincerian model, instrumental variable method
Fields of Research (2008): 13 Education > 1301 Education Systems > 130199 Education systems not elsewhere classified
14 Economics > 1402 Applied Economics > 140204 Economics of Education
Fields of Research (2020): 39 EDUCATION > 3903 Education systems > 390399 Education systems not elsewhere classified
38 ECONOMICS > 3801 Applied economics > 380104 Economics of education
Socio-Economic Objectives (2008): C Society > 93 Education and Training > 9305 Education and Training Systems > 930501 Education and Training Systems Policies and Development
Socio-Economic Objectives (2020): 16 EDUCATION AND TRAINING > 1602 Schools and learning environments > 160205 Policies and development
Identification Number or DOI: https://doi.org/10.1016/j.ijedudev.2021.102424
URI: http://eprints.usq.edu.au/id/eprint/42180

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