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The roles of education in expenditure inequality in Bhutan: an analysis in an urban–rural context

Author

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  • Dorji Lethro

    (National Statistics Bureau, Royal Government of Bhutan)

  • Takahiro Akita

    (Rikkyo University)

Abstract

Based on the 2007 and 2012 Bhutan living standard survey, this study analyzes the roles of education in expenditure inequality in Bhutan in an urban–rural context. Expenditure inequality is high among SAARC countries. Since urban–rural disparity is not large, much of expenditure inequality is due to inequalities within urban and rural areas, particularly within urban areas. Unless inequalities within urban and rural areas are reduced, therefore, overall expenditure inequality would not decrease. The expansion of higher education seems to have increased expenditure inequality among households with higher education, particularly in urban areas. Together with a rise in expenditure disparity among educational groups, this has raised overall expenditure inequality. In rural areas, the government needs to promote basic education, while developing basic infrastructures and creating urban opportunities to mitigate rural–urban migration. In urban areas, the government needs to strengthen industrial infrastructure and promote labor-intensive manufacturing activities to generate employment opportunities.

Suggested Citation

  • Dorji Lethro & Takahiro Akita, 2019. "The roles of education in expenditure inequality in Bhutan: an analysis in an urban–rural context," Asia-Pacific Journal of Regional Science, Springer, vol. 3(2), pages 465-485, June.
    • Handle: RePEc:spr:apjors:v:3:y:2019:i:2:d:10.1007_s41685-019-00105-y
    DOI: 10.1007/s41685-019-00105-y
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    More about this item

    Keywords

    Education; Decomposition of educational Gini; Blinder–Oaxaca decomposition; Hierarchical decomposition of expenditure inequality; Bhutan;
    All these keywords.

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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