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Household Income Dynamics and Wage Inequality In Bangladesh: Evidence From Hies 2010 And 2016

Author

Listed:
  • MAMUN , AL

    (Center for Policy and Economic Research (CPER), Bangladesh)

  • ARFANUZZAMAN , MD.

    (Food and Agriculture Organization of the United Nations (FAO), Bangladesh)

  • NISHAT , NUSRAT JAHAN

    (Independent University, 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.

Suggested Citation

  • Mamun , Al & Arfanuzzaman , Md. & Nishat , Nusrat Jahan, 2023. "Household Income Dynamics and Wage Inequality In Bangladesh: Evidence From Hies 2010 And 2016," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 48(3), pages 91-110, September.
    • Handle: RePEc:ris:jecdev:0066
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    More about this item

    Keywords

    Bangladesh; Economic Development; Gender Wage Gap; HIES 2016; Human Capital; Wage Inequality;
    All these keywords.

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J00 - Labor and Demographic Economics - - General - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • L30 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - General
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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