Equity in Education Outcomes and Spending in Bangladesh: Evidence from Household Income and Expenditure Surveys

Abstract

Bangladesh has continued to improve access to education and educational attainment. Gains have been equitable, reducing disparities by gender, wealth, and geography. Yet progress is still needed at higher education levels, and there are still persistent gaps between the poor and rich and across districts. Gains are partly the result of the Government of Bangladesh (GoB) efforts to improve education outcomes, but also reflect increased private spending by households. GoB education spending is still low compared to other countries in the region and presents large variation across the territory, which is not correlated with education outcomes and internal efficiency indicators. Only when public spending translates into lower student-to-teacher ratios do outcomes seem to improve, but those ratios remain inadequate compared to other countries and unevenly distributed across districts. Focusing on higher quality spending rather than increasing overall budgets will be a priority for further progress. Stipend programmes help with the progressivity of the system at the primary level. However, at the secondary level, there is still significant room to improve the progressivity of these benefits. Finally, addressing norms and expectations around the benefits of schooling can be an important avenue to increase school attendance. About four in ten secondary school-age children out of school report lack of interest or being too old to go back as their main reasons for not attending school; three in ten females cite family chores and marriage as reasons for not attending.