Public Education Spending and Income Inequality in Bangladesh

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.