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Spatial Dimensions of Income Inequality and Poverty in Bangladesh: An Analysis of the 2005 Household Income and Expenditure Survey Data

Using the 2005 Household Income and Expenditure Survey, this paper examined income inequality and poverty in Bangladesh with particular focus on their spatial dimensions. Since disparity among administrative divisions is small, inequalities within each administrative division, particularly urban inequality, need to be reduced. Since education appears to have played an important role in inequality, especially in urban areas, raising general educational level is essential. Since wages and salaries serve to have mitigated inequality, especially in urban areas, opportunities for formal income should be expanded. Though the effect may be small, transfer programs should be expanded to raise income among the poorest. In addition to raising general educational level, it is necessary to provide primary education throughout the country in order to mitigate poverty. It is imperative to raise agricultural productivity in both rural and urban sectors. Furthermore, non-agricultural activities should be promoted according to the pattern of comparative advantages.

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File URL: http://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2011_20.pdf
File Function: First version, 2011
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Paper provided by Research Institute, International University of Japan in its series Working Papers with number EMS_2011_20.

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Length: 35 pages
Date of creation: Oct 2011
Date of revision:
Handle: RePEc:iuj:wpaper:ems_2011_20
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  1. Martin Ravallion & Shaohua Chen & Prem Sangraula, 2007. "New Evidence on the Urbanization of Global Poverty," Population and Development Review, The Population Council, Inc., vol. 33(4), pages 667-701.
  2. √Čtienne Gilbert, 1983. "Sudhir Anand, Inequality and Poverty in Malaysia, measurement and decomposition," Revue Tiers Monde, Programme National Pers√©e, vol. 24(95), pages 709-710.
  3. Kotikula, Aphichoke & Narayan, Ambar & Zaman, Hassan, 2010. "To what extent are Bangladesh's recent gains in poverty reduction different from the past?," Policy Research Working Paper Series 5199, The World Bank.
  4. Ravallion, Martin & Sen, Binayak, 1994. "When method matters : toward a resolution of the debate about Bangladesh's poverty measures," Policy Research Working Paper Series 1359, The World Bank.
  5. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April.
  6. Khandker, Shahidur R. & Bakht, Zaid & Koolwal, Gayatri B., 2006. "The poverty impact of rural roads : evidencefrom Bangladesh," Policy Research Working Paper Series 3875, The World Bank.
  7. Anthony Shorrocks & Guanghua Wan, 2005. "Spatial decomposition of inequality," Journal of Economic Geography, Oxford University Press, vol. 5(1), pages 59-81, January.
  8. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  9. Hiranya Nath & Khawaja Mamun, 2007. "Trade, growth and wage inequality in Bangladesh," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 16(4), pages 505-528.
  10. Shilpi, Forhad, 2008. "Migration, sorting and regional inequality : evidence from Bangladesh," Policy Research Working Paper Series 4616, The World Bank.
  11. Khandker, Shahidur R. & Khalily, M. A. Baqui & Samad, Hussain A., 2010. "Seasonal and extreme poverty in Bangladesh : evaluating an ultra-poor microfinance project," Policy Research Working Paper Series 5331, The World Bank.
  12. Pyatt, Graham & Chen, Chau-nan & Fei, John, 1980. "The Distribution of Income by Factor Components," The Quarterly Journal of Economics, MIT Press, vol. 95(3), pages 451-73, November.
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