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Household Rates of Return to Education in Rural Bangladesh: Accounting for Direct Costs, Child Labour, and Option Value

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  • M. Najeeb Shafiq

Abstract

This study estimates the returns to boys' education for rural Bangladeshi households by accounting for some conventionally neglected items: direct costs of education, foregone child labour earnings, and option value. The estimated returns are 13.5% for primary education, 7.8% for junior-secondary education, 12.9% for higher-secondary education, and 9.7% for higher education; the resulting option value from primary education is 5.3%. These results suggest that there is economic rationale for non-poor rural households to invest in boys' education, especially at the primary level.

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File URL: http://www.tandfonline.com/10.1080/09645290701306358
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Education Economics.

Volume (Year): 15 (2007)
Issue (Month): 3 ()
Pages: 343-358

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Handle: RePEc:taf:edecon:v:15:y:2007:i:3:p:343-358

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Related research

Keywords: Bangladesh; child labour; direct costs; option value; rate of return to education;

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Cited by:
  1. Edmonds, Eric V., 2008. "Child Labor," Handbook of Development Economics, Elsevier.
  2. Stephen Bazen & Claire Salmon, 2010. "The impact of parental health on child labor: the case of Bangladesh," Economics Bulletin, AccessEcon, vol. 30(4), pages 2549-2557.
  3. Mohammad Nashir Uddin & Mohammad Hamiduzzaman & Bernhard G. Gunter, 2009. "Physical and Psychological Implications of Risky Child Labor: A Study in Sylhet City, Bangladesh," Bangladesh Development Research Working Paper Series (BDRWPS) BDRWPS No. 8, Bangladesh Development Research Center (BDRC).

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