Return to Education in Bangladesh : At Different Levels of Education and Wage Distribution

The purpose of this study is to investigate the return to education in Bangladesh.Several previous studies found the rate of return to education was just above 7, but these studies failed to account for sample selection bias and the endogeneity of education.Compared to the estimated results of other developing countries, the return to education in Bangladesh found to be relatively low.This study uses the recently published Household Income and Expenditure (HIES) survey 2016 data.The dependent variable is wages received daily in kind, in cash and monthly wage.This study applies the 2 step Heckman method to correct sample selection bias.Considering the heterogeneity of return to education across the distribution of the sample, quantile regression method is used to check the return.The…