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Educational Expansion and Declining Expenditure Inequality in Nepal over the Past Two Decades

Author

Listed:
  • Takahiro Akita
  • Avadhesh Kumar Shukla

    (IUJ Research Institute, International University of Japan)

Abstract

Nepal has made significant progress in reducing inequality in economic well-being. Meanwhile education has expanded substantially. This study analyzes the role of educational expansion in reducing expenditure inequality using data from the three rounds of the Nepal Living Standards Survey. It conducts a two-stage hierarchical inequality decomposition analysis by location and education. The expansion of basic education in rural areas contributed significantly to reducing overall inequality. The government should further promote basic education, while improving its quality and enhancing the socio-economic status of households. The government should also develop socio-economic infrastructure and establish efficient transportation networks throughout the country.

Suggested Citation

  • Takahiro Akita & Avadhesh Kumar Shukla, 2025. "Educational Expansion and Declining Expenditure Inequality in Nepal over the Past Two Decades," Working Papers EMS_2025_04, Research Institute, International University of Japan.
    • Handle: RePEc:iuj:wpaper:ems_2025_04
    as

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    File URL: https://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2025_04.pdf
    File Function: First version, 2025
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    More about this item

    Keywords

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    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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