Household Income Dynamics and Wage Inequality In Bangladesh: Evidence From Hies 2010 And 2016
0
조회
0
다운로드
0
인용
0
참고문헌
키워드
초록
The study used the Household Income and Expenditure Survey (HIES) data from 2010 and 2016 of Bangladesh to examine the effects of human capital (education, experience) and social factors (age, gender, location, economic activity) on income using the OLS and IV (2SLS and GMM) regression methods. The study suggests that both education and experience positively affected income in both rural and urban areas. The gender wage gap, rural-urban wage gap, and industrial and service sector wage gap all climbed to 44.1 percent, 19.4 percent, and 5 percent, respectively, in 2016, much higher than in 2010. It has emerged that both urban males and females earn significantly more than their rural counterparts in both periods. The study found a wage dominance of the service sector over the agricultural and industrial sectors in 2016. Besides, the gap between the agricultural and non-agricultural sector’s wages decreased significantly in 2016, indicating decent wage growth in the agriculture sector. As both human capital and social factors have a remarkable contribution to income, strategic planning, and investment are required to reduce inequality and wage gaps and advance inclusive development in Bangladesh.
Abstract
The study used the Household Income and Expenditure Survey (HIES) data from 2010 and 2016 of Bangladesh to examine the effects of human capital (education, experience) and social factors (age, gender, location, economic activity) on income using the OLS and IV (2SLS and GMM) regression methods. The study suggests that both education and experience positively affected income in both rural and urban areas. The gender wage gap, rural-urban wage gap, and industrial and service sector wage gap all climbed to 44.1 percent, 19.4 percent, and 5 percent, respectively, in 2016, much higher than in 2010. It has emerged that both urban males and females earn significantly more than their rural counterparts in both periods. The study found a wage dominance of the service sector over the agricultural and industrial sectors in 2016. Besides, the gap between the agricultural and non-agricultural sector’s wages decreased significantly in 2016, indicating decent wage growth in the agriculture sector. As both human capital and social factors have a remarkable contribution to income, strategic planning, and investment are required to reduce inequality and wage gaps and advance inclusive development in Bangladesh.
참고문헌 (45)
- Acemoglu, D., "Beyond Becker : Training in Imperfect Labour Markets", Economic Journal, 109(453), pp.112~142 (1999)
- Alam, M. T., "Return from Education System in Bangladesh : An Investigation on Comparative Flashback Scenario", African Journal of Business Management, 3(10), pp.567~575 (2009)
- Asadullah, M. N., "Returns to Education in Bangladesh", Education Economics, 14(4), pp.453~468 (2006)
- Becker, G. S., "Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education" (2009), University of Chicago Press
- Blundell, R., "The Returns to Higher Education in Britain: Evidence from a British Cohort", Economic Journal, 110(461), pp.F82~F99 (2000)
- Chowdhury, M. N., "Human Capital Development and Economic Growth in Bangladesh", Journal of World Economic Research, 7(2), pp.52~63 (2018)
- A Disaggregated Analysis of the Long Run Impact of Vocational Qualifications, "Conlon", Bank for International Settlements, ~, pp.BIS Research Paper No.106 (2013)
- Cram, J. A., "Does Human Capital Play a Role in the Growing Income Inequality in the OECD Countries?", pp.2017
- Davidson, R., "Estimation and Inference in Econometrics, in OUP Catalogue" (1993), Oxford University Press
- Economic Benefits of Lifelong Learning, "Dorsett, R.", Centre for Learning and Life Chances in Knowledge Economies and Societies, ~, pp.LLAKES Research Paper No.13 (2010)
- Dougherty, C., "Why Are the Returns to Schooling Higher for Women than for Men?", Journal of Human Resources, XL(4), pp.969~988 (2005)
- Equitable Growth, "Gender Wage Inequality in the United States and What to do about It" (2018)
- Földvári, P., "Should Less Inequality in Education Lead to a More Equal Income Distribution?", Education Economics, 19(5), pp.537~554 (2011)
- Feigenbaum, J.J., "The Return to Education in the Mid-Twentieth Century : Evidence from Twins", Journal of Economic History, 80(4), pp.1101~1142 (2020)
- General Economics Division, "8th Five Year Plan" (2021), Bangladesh Planning Commission, Government of the People’s Republic of Bangladesh
- Herrera, C., "Gender Segregation and Income Differences in Nicaragua", Feminist Economics, 25(3), pp.144~170 (2019)
- Hansen, L. P., "Large Sample Properties of Generalized Method of Moments Estimators", Econometrica, 50(4), pp.1029~1054 (1982)
- The Macroeconomics of Labor Market Outcomes in MENA over the 1990s: How Growth Has Failed to Keep Pace with a Burgeoning Labor Market, "Keller, J.", Egyptian Centre for Economic Studies, ~, pp.Egyptian Centre for Economic Studies Working Papers Series No.71 (2002)
- Kennedy, P., "A Guide to Econometrics" (2008), John Wiley and Sons
- Kolstad, I., "Returns to education among entrepreneurs in Bangladesh", Journal of Asian Economics, 34, pp.54~65 (2014)
- Liu, T., "Income Inequality: How Do Racial and Gender Differences Influence the Incomes in U.S", Journal of Human Resource and Sustainability Studies, 7(2), pp.233~243 (2019)
- MD. Arfanuzzaman, "The Effects of Human Capital and Social Factors on the Household Income of Bangladesh: An Econometric Analysis", Journal of Economic Development, 45(3), pp.29~49 (2020), 경제연구소[DOI]
- Mamun, S. A. K., "The Private Returns to Education in Rural Bangladesh", International Journal of Educational Development, 84, pp.102424~ (2021)
- Mincer, J., "Investment in Human Capital and Personal Income Distribution", Journal of Political Economy, 66(4), pp.281~302 (1958)
- Schooling, Experience, and Earnings, "Mincer, J.", Human Behavior and Social Institutions, ~, pp.Human Behavior and Social Institutions Working Paper No.2 (1974)
- Ministry of Finance, "National Pay Scale-2015" (2015), Government of the People’s Republic of Bangladesh
- Shafiq, M. N., "Household Rates of Return to Education in Rural Bangladesh : Accounting for Direct Costs, Child Labour, and Option Value", Education Economics, 15(3), pp.343~358 (2007)
- Can Educational Expansion Improve Income Inequality in China? Evidence from the CHNS 1997 and 2006 Data, "Ning, G.", Institute of Labor Economics, ~, pp.IZA Discussion Paper No.5148 (2010)
- Ramsey, J. B., "Tests for Specification Errors in Classical Linear Least-Squares Regression Analysis", Journal of the Royal Statistical Society : Series B(Methodological), 31(2), pp.350~371 (1969)
- Salmon, C., "Child Labor in Bangladesh: Are Children the Last Economic Resource of the Household?", Journal of Developing Societies, 21(1-2), pp.33~54 (2005)
- African Continental Free Trade Area:Challenges and Opportunities of Tariff Reductions, "Saygili, M.", UNCTAD, ~, pp.UNCTAD Research Paper No.15 (2018)
- Scully, G. W., "Economic Growth and Income Inequality", Public Choices, 115(3), pp.299~312 (2002)
- Sharif, J. A., "Human Resource Development and Economic Growth in Bangladesh : An Econometric Analysis", European Journal of Business and Management, 5(7), pp.133~144 (2013)
- Shahparia, G., "Studying Effects of Human Capital on Income Inequality in Iran", Procedia-Social and Behavioral Sciences, 109, pp.1386~1389 (2014)
- Analysis of the Determinants of Income and Income Gap between Urban and Rural China, "Su, B.", Institute for the Study of Labor, ~, pp.IZA Discussion Papers 7162 (2013)
- The Sustainable Development Goals Report 2018, "United Nations", ~, pp.Sales No. E.18.I.6 (2018)
- World Economic Situation and Prospects 2016, "United Nations", ~, pp.Sales No. E.16.II.C.2 (2016)
- World Economic Situation and Prospects 2019, "United Nations", ~, pp.Sales No. E.19.II.C.1 (2019)
- Services and Structural Transformation for Development, "United Nations Conference on Trade and Development", ~, pp.UNCTAD (2017), DITC[DOI]
- Verbeek, M., "A Guide to Modern Econometrics" (2008), John Wiley and Sons
- Urban-Rural Wage Gaps in Developing Countries: Spatial Misallocation or Efficient Sorting?, "Waugh, M.", Society for Economic Dynamics, ~, pp.Meeting Papers No.1032 (2016)
- Wooldridge, J. M., "Applications of Generalized Method of Moments Estimation", Journal of Economic Perspectives, 15(4), pp.87~100 (2001)
- Wooldridge, J. M., "Introductory Econometrics: A Modern Approach" (2015), Cengage Learning
- The Effect of Increasing Human Capital Investment on Economic Growth and Poverty, "World Bank", ~, pp.Policy Research Working Papers No.8590 (2019)
- Young, A., "Inequality, the Urban-Rural Gap, and Migration", Quarterly Journal of Economics, 128(4), pp.1727~1785 (2013)