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Report on
Analyzing The Role Of Family Income In Educational
Investment In Rural Bangladesh.
Course Code: PA-224
Submitted to
Professor Dr. Md. Rashidul Islam Sheikh

Professor

Department of Public Administration

Comilla University

Submitted by, Group-E

Tanjina Akter (12203008)

Jakia Sultana (ID:12203015)

Sumaya Akter (12203022)

Mijanur Rahman Sharif (12203029)

Gazi Mhabubur Rahman (12203038)

Nazmun Nahar (12203045)

Rahmat Ali (12203053)

Babul Mia (12203063)

Submitted on: 02-02-2025

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Acknowledgement

We extend our deepest gratitude to those who have contributed to the successful completion of
this group term paper. The journey from inception to completion was filled with challenges,
learning experiences, and moments of collaboration that we will forever cherish.

First and foremost, we would like to express our sincere appreciation to our course teacher,
Professor Dr. Md. Rashidul Islam Sheikh, Professor of Department of Public Administration,
Comilla University, for providing us with the opportunity to explore this topic and for his
guidance throughout the process. His expertise and encouragement were instrumental in
shaping the direction of our research.

Our heartfelt thanks go to each member of our group, Jakia, Mhabubur Rahman , Babul Mia,
Mejan, Tanjina, Nazmun Nahar, Sumaya,& me (Rahmat Ali) . whose commitment, dedication,
and hard work made this endeavor possible.

Lastly, we acknowledge the collective effort and commitment of all those who played a part
directly dows or indirectly, in the completion of this group term paper. This project has been a
journey of growth, collaboration, and shared achievements that will remain etched in our
memories.
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Abstract

The complex relationship between family income and educational investment is examined in this
report, with a focus on rural Bangladesh. It starts with an overview of the body of research showing
how family money has a big impact on academic achievement and enrollment rates, among other
educational outcomes. The data collecting and analysis methods used to look at these dynamics are
described in depth in the methodology section. Results show that although primary school is free,
investment in education is hampered by indirect expenses and lost wages from child labor. In order
to help rural households overcome these obstacles, the report highlights the necessity of specific
policy solutions, such as conditional cash transfers and community-based programs.

It also points out gaps in the existing knowledge, especially in low- and middle-income areas, and
offers directions for future study to better comprehend how socioeconomic issues affect schooling. In
the end, this study makes a significant contribution to the current discussion on socioeconomic status
and education by promoting laws that cater to the particular requirements of underprivileged groups.
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TABLE OF CONTENTS
Chapter 1:
Preface.........................................................................................................................................5

1.2 statement of the problem........................................................................................................6

1.3 Significance of the research ...............................................................................................7

1.4 objective of the study.............................................................................................................7

1.5 Research Question .............................................................................................................8

Chapter 2: Literature review .................................................................................................8

2.1-Ideal Mark Framework .....................................................................................................8

2.2 Historical Background........................................................................................................11

2.3 Over view of relevant litarature...........................................................................................11

2.4 Research gap in previous literature......................................................................................13

Chapter 3: Methodology........................................................................................................15

3.1 Research design..................................................................................................................15

3.2 Research approach..............................................................................................................15

3.3 Data collection method........................................................................................................15

3.4 Data analysis........................................................................................................................16

3.5 Study area.............................................................................................................................17

3.6 Variables...............................................................................................................................17

3.7 Ethical consideration.............................................................................................................18

3.8 Analytical Framework..........................................................................................................19

Chapter 4: presentation and data analysis............................................................................23

4.1 Presentation of data and analysis & interpretation...............................................................23

4.2 Income distribution among rural families.............................................................................24

4.3 Correlation between family income & Educational investment............................................25

4.4 Barriers to educational investment in low income families..................................................27

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4.5 Comparing investment patterns in primary vs secondary education.....................................28

4.6 Influence of family size on education spending..............................................................29

Chapter: 5 Results ...................................................................................................................31

5.1 Expenditure Catagory........................................................................................................31

5.2 Government Budget on education.....................................................................................33

Chapter 6: Key findings...........................................................................................................35

6.1 Key findings........................................................................................................................35

6.2 Limitation of the study.......................................................................................................35

6.3 Recommendation of the study............................................................................................35

Chapter 7: Conclusion...............................................................................................................36

7.1 Conclusion..........................................................................................................................36

Chapter 8: Reference...............................................................................................................38
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1 Chapter 1: PREFACE
1.1 Introduction:

Education is widely recognized as a cornerstone for sustainable development and poverty

alleviation. In developing countries, particularly in rural areas, the ability of families to invest in
education is a critical determinant of the future economic prospects of children. Among the factors
influencing this investment, family income plays a pivotal role, shaping both the access to and the
quality of education available to children. This study explores the intricate relationship between
family income and educational investment in rural Bangladesh, where socio-economic disparities
and structural constraints pose significant challenges to achieving equitable educational outcomes.

Bangladesh has made notable strides in improving access to education over the past few decades,
reflected in increased enrollment rates and gender parity in primary education. However, rural areas
still face substantial barriers, including poverty, limited infrastructure, and cultural factors that often
prioritize immediate economic survival over long-term educational goals. Family income, as a
primary economic resource, influences not only whether children attend school but also their
retention, performance, and opportunities for higher education. This dynamic is further complicated
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by the interplay of factors such as household size, parental education levels, and access to external
support systems like government subsidies or non-governmental organization (NGO) programs.

The objective of this research is to analyze how variations in family income impact educational
investment decisions in rural Bangladesh. Specifically, the study investigates whether higher family
income correlates with increased spending on education and examines the trade-offs families face
between education and other basic needs. By identifying key trends and barriers, this research aims
to provide insights that can inform policies and interventions aimed at reducing educational
inequalities in rural communities.

This paper is structured as follows: the subsequent section reviews relevant literature on the
relationship between family income and educational outcomes. The third section outlines the
methodology, including data collection and analysis techniques. The fourth section presents the
findings, highlighting the nuanced effects of income on educational investment. Finally, the paper
concludes with policy recommendations and suggestions for future research.

1.2 statement of the problem:

In rural Bangladesh, education is a major determinant of social and economic mobility; However,
significant disparities in educational investment and outcomes persist, often influenced by family
income levels. Although government efforts have been made to increase educational opportunities,
many families in rural areas still face financial barriers that limit their children's educational
opportunities. Limited family income can lead to insufficient funds for school-related expenses, such
as tuition, uniforms, transportation, and learning materials. As a result, children from low-income
families may either drop out of school early or have limited access to quality education, affecting
their future socioeconomic prospects.

Despite the growing importance of education in poverty alleviation and national development, there
is a lack of comprehensive research on the specific ways in which household income directly affects
education investment in rural Bangladesh. Understanding the extent to which family income
influences educational decisions, including school enrollment, attendance, and retention, is important
for formulating policies that address educational disparities. This study seeks to explore the role of
household income in shaping educational investment in rural Bangladesh, with the aim of identifying
key barriers and potential solutions to increasing educational access and equity in these communities

1.3 Significance of the study:

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The complex relationship between family income and educational investment in rural Bangladesh
can be better understood thanks to this study. Socioeconomic development is significantly influenced
by education, and developing effective policies requires an understanding of the variables affecting
both the quality and accessibility of education. The following summarizes the study's significance:

Developing Policies and Allocating Resources:

This study gives policymakers important information by determining the relationship between family
income and educational investment. It draws attention to the areas in which financial limitations
impair the quality and accessibility of education, allowing for focused interventions to assist low-
income families.

Reduction of Inequality in Education:

The results will help to clarify how different economic groups in rural Bangladesh invest differently
in education. Reducing social inequality requires addressing these discrepancies.

Rural Communities' Empowerment:

Education has a transforming effect on community and individual empowerment. This study helps
develop methods that can improve educational chances for rural families, hence improving their
socio-economic circumstances, by gaining an awareness of the financial barriers to education.

Advice for Development Programs and Non-Governmental Organizations

(NGOs):
The results of this study can be used by NGOs and development organizations to create educational
assistance initiatives that are more successful. This covers financial aid programs designed to meet
the requirements of low-income households, such as subsidies, scholarships, and others.

Contribution to Scholarly Writing:

This study contributes to the expanding corpus of research on the connection between
education and socioeconomic status. By concentrating on rural Bangladesh, it fills a research void by
offering localized data that can be contrasted with worldwide patterns.

Economic Development and Human:

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Development of Human Capital and Economic Growth

A key component of developing human capital is education. This study can indirectly support
policies that encourage economic growth by addressing the financial obstacles that rural households
confront and fostering a workforce that is better educated and more talented.

1.4 objective of the study:

The overall objective of this paper is to explore the Analyzing the Role of Family Income in
Educational Investment in Rural Bangladesh. The specific objective are:

1. To examine how household income contributes to educational investment in rural Bangladesh.

2. To assess the impact of family income on children's educational opportunities in rural Bangladesh.

3. To identify factors within family income that influence educational investment decisions in rural
households

4. To examine how government support and future education decisions can reduce the burden of
education costs for low-income families in rural Bangladesh.

1.5 Research Question

In line with the stated objectives, the following questions will guide this study:

1. How does household income affect education investment in rural Bangladesh?

2. What are the patterns of educational expenditure across different income levels in rural
Bangladesh?

3 How do households in rural Bangladesh prioritize educational spending within their household
budgets?

4. To what extent does income inequality affect dropout rates in rural schools?

Chapter-2: Literature review

2.1-Ideal Mark Framework

The role of family income in educational investment should begin with theoretical frameworks like
Human Capital, Social Capital, and Economic Theories of Parental Investment. It should explore
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how family income impacts direct financial investments in education, access to resources, and
parental involvement.

Additionally, it should address socioeconomic inequality, educational achievement gaps, and

intergenerational patterns of investment. The review can be structured around the following core
themes:

2.1.1. Human Capital Theory: This framework suggests that families invest in education with
the expectation of future returns, which are influenced by their income levels. Higher-income
families are more likely to afford quality education, extracurricular activities, private tutoring, and
other enrichment opportunities.

2.1.2. Socio economic Status (SES) and Educational Access: The SES model connects
family income to access to resources such as school quality, safety, and extracurricular opportunities.
Lower-income families often face challenges such as attending underfunded schools, limited
educational support, or fewer opportunities for academic enrichment, which can hinder educational
progress.

2.1.3. Cultural and Social Capital: Drawing on Bourdieu’s theory, research highlights that
beyond financial resources, family income is also linked to social and cultural capital. Higher-
income families tend to have stronger social networks and cultural practices that prioritize
educational achievement.
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2.1.4. Parental Involvement and Expectations: Income affects parental involvement, as

higher-income families often have more time, flexibility, and resources to engage in their children’s

education.

2.2- Historical background

The relationship between family income and educational investment has been a critical focus in
education and economics research. Historically, scholars have examined how socioeconomic status
influences access to educational resources, academic achievement, and future opportunities.

In the early 20th century, researchers like Coleman (1966) emphasized the role of family
background, including income, in shaping educational outcomes. Over time, studies have
demonstrated that children from higher-income families tend to have better access to quality
education, extracurricular activities, and private tutoring, leading to higher academic performance
and college attendance rates.

In contrast, lower-income families often face constraints that limit educational investment, such as
affordability of schooling, access to educational materials, or time spent on academic support. This
disparity has been linked to intergenerational poverty, with lower-income families having fewer
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opportunities to invest in education. Recent studies continue to explore these dynamics, examining
policies aimed at reducing educational inequalities and enhancing investment in low-income
families’ educational resources.

2.3- Overview of relevant literature:

Family income is a significant factor influencing educational investment, as it can affect the ability of families
to afford quality education, learning resources, extracurricular activities, and even private schooling. Various
studies have examined how family income impacts educational outcomes such as enrollment rates, academic
performance, and long-term educational attainment. The relationship between family income and education
investment is complex, shaped by both direct and indirect factors such as socio-economic status, social
capital, and government policies.

Key Areas of Research in the Literature:

2.2.1-Impact of Family Income on Access to Education:

Findings: Families with higher income levels are better able to afford the direct costs of education,
such as tuition, books, and technology. This leads to higher enrollment rates and fewer dropouts in
middle and high-income households.

Study Example: A study by Duncan et al. (2014) found that children from high-income families have
a greater likelihood of attending college and achieving higher levels of academic success.

Figure: The effect of intergenerational mobility on family education

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2.2.2-Effect on Educational Resources and Support:

Findings: Families with more resources tend to invest in private tutoring, extracurricular activities,
and educational tools. These resources often contribute to improved academic outcomes.

Study Example: According to a study by Reardon (2011), wealthier families tend to provide more
educational resources and greater academic support at home, which has a positive correlation with
students’ academic achievement.

2.2.3-Socioeconomic Status and Educational Expectations:

Findings: Higher family income is linked to higher educational expectations for children. Families
with greater financial resources tend to have higher aspirations for their children’s academic success.

Study Example: Research by Lareau (2003) suggests that parents from higher-income households
typically engage more actively in their children’s education and set higher academic expectations.

2.2.4-Impact of Government Policies and Financial Aid:

Findings: Government financial aid, scholarships, and low-interest student loans can help mitigate
the effect of low family income on educational investment.

Study Example: A study by Dynarski & Scott-Clayton (2013) showed that federal student aid plays a
crucial role in enabling students from low-income families to attend college.

2.2.5 Inequality in Educational Opportunities:

Findings: Family income inequality often leads to unequal access to educational opportunities,
contributing to gaps in academic achievement and college completion rates between low and high-
income students.

Study Example: Bourdieu & Passeron’s (1990) theory of social capital suggests that higher-income
families have more access to valuable educational networks and resources, creating an advantage for
their children.
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2.4-Research Gap in the Previous Literature :

While the existing body of research provides valuable insights, several gaps remain:

2.4.1-Heterogeneity in Impact
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Most studies treat income as a homogenous variable, without adequately exploring its interaction
with factors like gender, ethnicity, rural-urban divides, and parental education levels.

2.4.2-Non-Monetary Influences

Although income is crucial, limited research has disentangled the effects of non-monetary factors
(e.g., parental involvement, cultural practices) that often co-vary with income.

2.4.3-Causality vs. Correlation

While many studies identify a strong correlation between income and educational investment, fewer
explore causality, especially using robust methodologies like randomized controlled trials or natural
experiments.

2.4.4-Impact of Emerging Technologies

The role of digital and online learning in bridging income-related educational gaps remains
underexplored, especially in low-income households.

2.4.5-Longitudinal Analysis

Research focusing on the long-term impacts of family income on educational trajectories,

particularly during critical transitions (e.g., from high school to college), is relatively scarce.

2.4.6-Global and Regional Contexts

Much of the literature is concentrated in high-income countries, with limited attention to low- and
middle-income regions where family income may play a different role in educational investment due
to structural differences.

By addressing these gaps, future research can provide a more nuanced understanding of the role of
family income in educational investment and inform targeted policies to promote educational equity.
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Chapter 3: Methodology

3.1. Research Design

In order to investigate how family income affects educational investment in rural Bangladesh, this
study uses a mixed-methods research approach. A thorough grasp of the intricate relationship
between income and education is ensured by the mix of quantitative and qualitative methodologies.
While qualitative approaches offer a more profound understanding of the socio-cultural elements
impacting educational choices, quantitative approaches are employed to establish statistical
correlations.

3.2. Research approach

This term paper examines how family income affects educational investment in rural Bangladesh
using content analysis and a survey from secondary sources. In order to examine the connection
between family income and educational investment in rural Bangladesh, this issue employs a mixed-
methods research methodology that blends quantitative and qualitative techniques.

3.3. Data Collection Methods

3.3.1. Quantitative Data Collection

The main instrument for gathering quantitative data is a structured survey. The purpose of the survey
is to collect comprehensive data on:

1.Family income levels, broken down into low, middle, and high income brackets.

2. Expenses related to education, such as those for extracurricular activities, school

uniforms, textbooks, tuition, and transportation.

3. Further socioeconomic factors like the size of the home, the educational attainment of
the parents, and their occupation.

The poll will focus on rural homes with children ages 6 to 18 enrolled in school. In order
to facilitate precise data collection and analysis, questions are designed to be clear and
consistent.
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3.3.2. Qualitative Data Collection

Semi-structured interviews and focus group discussions (FGDs) will be conducted in addition to the
survey. These qualitative approaches seek to:

1. Gain insight into how parents view education and its significance.

2. Examine how decisions about educational spending are made.

3. Determine the obstacles to education, including access to high-quality schools, gender bias,
and financial limitations.

Participants for interviews and FGDs will include parents, teachers, and local education officers. The
open-ended nature of these discussions allows for the exploration of nuanced perspectives that
cannot be captured through surveys alone.

3.4. Data Analysis

3.4.1. Quantitative Analysis:

Statistical tools like SPSS or Stata will be used to analyses the quantitative data gathered from
surveys. Important actions consist of:
1. Descriptive statistics: a summary of socioeconomic factors such as income levels and schooling
expenses.
2. Inferential Statistics: Regression analysis is used to determine how family income and
educational investment are related. This will entail investigating the ways in which this link is
moderated by other variables, such as family size and parental education.
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3.4.2. Qualitative Analysis:

A thematic approach will be used to examine qualitative information gathered from interviews and
focus group discussions. One of the most important steps is to transcribe conversations and
interviews.

1. Coding the data to find recurrent themes, like gender inequality, cultural factors, and
financial impediments.

2. Creating a story that combines these themes with the quantitative data to give a
comprehensive picture of the problem.

3.5. Study Area:

● Scope: Rural areas in Bangladesh

● Selection Criteria:
⮚ Regions with diverse income levels
⮚ Accessibility and willingness to participate

3.6. Variables:
In this term paper, we use three kinds of variables. These are:

3.6.1. Dependent Variable

● Educational Investment: Measured as the total expenditure on education per household,

including tuition, books, uniforms, transportation, and extracurricular activities.

3.6.2. Independent Variable

● Family Income: Categorized into low, middle, and high-income groups, based on household
earnings.

3.6.3. Control Variables:

These variables are included to make sure that other factors do not skew the link between family
income and educational investment:
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1. Parental Education Levels: The parents' level of education (primary, secondary, and
above).

2. Household Size: The total number of family members living there.

3. Child Gender: Does an investment vary according to the child's gender (e.g., boys vs.
girls)?
4. Geographic Access: The availability of high-quality educational facilities or the distance
to the closest school.
5. Parental Employment Status: The type of parental employment (e.g., self-employed,
daily wage, or salaried).

6. Children's Age: The age range of school-age children may have an impact on buying
habits.
3.7. Ethical Considerations: Appropriate ethical procedures are followed in this study to
protect participant welfare and the integrity of the research:

 Informed Consent: Every participant will get comprehensive information on the study's
objectives, their legal rights, and the fact that participation is entirely voluntary. Consent will
be acquired verbally or in writing.
 Confidentiality: To safeguard participant identity, data will be anonymized. The study team
will be the only ones with secure access to personal data.
Cultural Sensitivity: Local customs and norms will be respected in the design of research
instruments and methodologies. In order to guarantee inclusivity, gender-sensitive strategies
will be used.
 Approval: Prior to starting the study, ethical permission from the appropriate Bangladeshi
research authorities will be obtained.

3.8. Analytical framework

To analyze the role of family income in educational investment in rural Bangladesh, an effective
analytical framework should integrate economic, sociocultural, and policy dimensions. Below is a
proposed framework with key components:
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3.8.1. Economic Context:

• Income Level and Distribution: Look at rural poverty rates, income disparity, and income
sources.

• Patterns of Household Expenditure: Examine how family income is distributed among

necessities (such as food, medical care, and education).

• Opportunity Costs: Examine the compromises families must make when deciding how
much money to spend on education vs work or other objectives.
3.8.2. Socio Cultural Factors

• Views of Education: Examine how families see education as a means of achieving upward
mobility.
• Gender Dynamics: Examine how boys' and girls' incomes affect their investment in
schooling in various ways.

• Social Norms and Expectations: Recognize how family expenditure on education is

influenced by cultural perspectives on education.
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3.8.3. Institutional and Policy Factors

• Government Policies: Evaluate how subsidies, scholarships, and public education funding
affect rural families.
• Access to Education: Assess the quantity, caliber, and cost of educational institutions in
rural regions.
• Non-Governmental Initiatives: Examine how private organisations and NGOs enhance
educational materials in underprivileged communities.
3.8.4. Barriers to Investment

• Direct expenses include books, uniforms, tuition, and travel expenses.

• Indirect Costs: When kids go to school, their earnings from child labour are lost.
• Structural Issues: Deficits in infrastructure (such as far-flung schools or no electricity).
3.8.5. Impact Measurement:

• Enrolment and Retention Rates: Examine the differences in educational attainment

between income brackets.
• Academic Performance: Evaluate how test scores and other quality outcomes are impacted
by wealth.
• Future Earnings and Social Mobility: Examine how investments in education affect
families' financial standing over the long run.
3.8.6. Analytical Methods

• Quantitative Analysis: To establish a relationship between educational outcomes and

income levels, using statistical procedures such as regression analysis.
• Qualitative Analysis: Gather insights at the individual and community levels through focus
groups and interviews.
• Comparative Studies: Examine various rural areas in Bangladesh or contrast rural and
urban environments.
3.8.7. Policy Recommendations

Make practical recommendations based on the results, such as conditional cash transfers, income-
based subsidies, or community-based educational initiatives catered to the requirements of rural
families.
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• Policy Interventions: Put in place focused financial aid initiatives to help low-income families pay
for their children's education.
• Community Engagement: Support neighborhood-based programs that support education and give
needy families access to resources.
• Awareness Campaigns: Spread knowledge about the value of education and the tools that are
available to assist families in making well-informed decisions about the education of their children.
• Community Engagement: Support neighborhood-based programs that support education
and give needy families access to resources.
3.8.8. Graphical Representation

3.9. Limitation of the study:

3.9.1. Self-Reported Income Data: Income-related questions may lead to inaccuracies due to social
desirability bias or reluctance to disclose actual figures.

3.9.2. Regional Variations:

● The findings may not be generalizable to all rural areas due to differences in infrastructure,
culture, and economic activities.

3.9.3. Causal Relationships:

● Correlation does not imply causation; other factors (e.g., parental education or access to
schools) may influence educational investment.
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3.9.4. Sampling Challenges:

● Reaching the most impoverished or geographically remote households may result in

underrepresentation.

3.9.5. Cultural Sensitivities:

● Discussions about income or gender-based educational priorities may face resistance in

conservative communities.

3.9.6. Time and Resource Constraints:

● Limited resources may restrict the size and depth of data collection, especially for
longitudinal studies.

3.10. Sampling Strategy

3.10.1. Target Population

The study focuses on rural Bangladeshi homes with at least one child between the ages of six and
eighteen enrolled in school. This guarantees that families that actively participate in educational
decisions are included.
3.10.2. The Size of the Sample

3.10.2. Sample Size

300 houses will be chosen as a sample to guarantee statistical correctness and dependability. The
requirement for reliable data and resource limitations are balanced by this sample size.

3.10.3. Sampling Technique

We'll use stratified random sampling. To guarantee representation across various economic
groupings, households will be categorized according to their income levels (poor, middle, and high).
To lessen bias, homes will be chosen at random within each strata.
Chapter 4:

4.1: Presentation of data, analysis & interpretation

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The graph illustrates the role of family income in educational investment in rural Bangladesh,
focusing on three key indicators: enrollment rates, education expenditure, and private tutoring
participation across low, middle, and high-income groups.

Enrollment rate represents blue bar, the enrollment rates increase significantly with income level.

Low income households: ~50% enrollment rate

Middle income households: ~70% enrollment rate

High income households: ~90% enrollment rate.

This shows that higher-income families can better afford and prioritize school enrollment.

Education expenditure is depicted by the green line, education expenditure rises sharply with
income. Low income families spend ~500 BDT annually on education ,compared to ~3000 BDT for
high income families.

This highlights the disparity in resources allocated to education based on income levels.

The red line represents the percentage of students receiving private tutoring, which also correlates
positively with income. ~30% of students from low-income families access private tutoring,
compared to ~70% from high-income households.
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4.2 Income distribution among rural families:

Compared to non-rural areas, income distribution is frequently poorer in rural areas. Rural families'
income distribution varies greatly by geography, economic activity, resource accessibility, and
governmental regulations. However, the degree of income disparity differs depending on the nation
and the kinds of activities households engage in.

The concentration of income has slightly increased as per HIES 2022. The overall Gini coefficient of

income has increased to 0.499 in HIES 2022 from 0.482 in HIES 2016 and 0.458 in HIES 2010.

Here is a bar chart illustrating the income distribution among rural families. Each income bracket
shows the percentage of families that fall within that range.

Less than $10,000: The largest group, accounting for 25% of rural families. $10,000 - $20,000: The
second-largest group, representing 30% of families. $20,000 - $30,000: Comprising 20% of the
families. $30,000 - $40,000: Representing 15% of families.$40,000 - $50,000: A smaller portion,
covering 7%. More than $50,000: The smallest group, making up 3%.

4.3: Correlation Between Family Income & Educational Investment:

The correlation between family income and educational investment is an important and complex
relationship, often studied in economics, sociology, and education policy. It refers to how a family’s
 P a g e | 26

income level can influence the amount they are able to spend on their children's education, as well as
the opportunities available to them in terms of educational attainment.

Direct Impact of Income on Educational Investment:

Families with incomes can afford to invest in better-quality education, including private schooling,
tutoring, extracurricular activities, and technology. This investment typically results in greater
educational opportunities for their children.

Higher family income levels increase the likelihood that children will attend and graduate from
higher education institutions such as colleges or universities. Wealthier families can afford tuition
fees, textbooks, and other costs associated with post-secondary education.

Income also impact overall family well-being, such as access to healthcare stable housing, and nutritious food
all of which contribute indirectly to a child's ability to succeed in school. Children in stable environments
tend to perform better academically.

Barriers for Low-Income Families:

Families with lower incomes may not be able to afford the same educational investments, such as
private schools, additional academic support, or higher education. This can lead to a cycle where
children from low-income families face greater barriers to achieving educational success, limiting
their future earning potential.

Even public schooling can impose financial burdens on families through costs like transportation,
school supplies, or extracurricular activities. Low-income families often cannot afford these extra
costs, putting their children at a disadvantage.

Social and Psychological Factors: Parents’ educational levels often correlate with their
income, and more highly educated parents are more likely to value and invest in their children’s
education. This

investment is not just monetary but also emotional, with highly educated parents being more
involved in their children’s academic life.

Wealthier families often have more social and cultural resources, including connections to
educational networks, which can lead to better opportunities and outcomes for their children. Low-
income families might lack these connections, further limiting their educational options.
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Policy and Government Intervention:

Governments and institutions often offer scholarships, grants, and loans to mitigate the impact of low
family income on access to higher education. Such initiatives aim to reduce the disparity between
families of different income levels. In many countries, the government allocates a portion of its
budget to ensure public schools provide equitable education to all children, regardless of family
income. This can include funding for schools in low-income areas, free or subsidized lunch
programs, and after-school care.

Long-Term Impact:

A child’s educational attainment is one of the strongest predictors of their future income level.
Families with higher incomes can create a more sustainable path to upward social mobility for their
children, while children from low-income families may face more challenges in breaking the cycle of
poverty.

The educational investment of one generation can affect future generations. Children of highly
educated and wealthier families are more likely to repeat the cycle, passing down advantages to their
children, while children from disadvantaged backgrounds may face continued struggles. The
correlation between family income and educational investment is highly significant, with wealthier
families being able to make greater investments in their children’s education, which leads to better
outcomes. On the other hand, low-income families often face barriers that limit their children’s
educational opportunities, perpetuating inequality. Education policy plays a critical role in trying to
bridge this gap.

4.4: Barriers to Educational Investment in Low-Income Families:

Family income is a major factor in determining educational attainment in rural Bangladesh. Family
income is a major determinant of educational investment in rural Bangladesh. There are several
obstacles that low-income families must overcome in order to give their kids access to quality
educational materials. These difficulties are influenced by structural, cultural, and economic
elements that work together to maintain educational inequalities.

Families in Bangladesh still have to pay for uniforms, books, transportation and exam fees even
though basic education is free in government schools. These costs are too high for families with little
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resources. In low-income households, children are frequently asked to help out with household
chores, work in agricultural fields, or participate in informal labour. Many families cannot afford to
sacrifice this income in order to send their children to school. Insufficient Facilities: Basic amenities
like clean restrooms, drinking water, and adequate classrooms may be lacking in remote schools.
Because they see no return on their investment, low-income families are further deterred from
making education a priority.

It is culturally preferred in many rural regions to invest in the education of boys rather than girls.
Because of early marriage customs, conventional gender roles, and the belief that girls' primary duty
is in the home, families may see education for females as less valuable. Lack of Awareness: Parents
may underestimate the significance of education if they have little or no formal education
themselves. They could not be completely aware of the long-term advantages of education, which
would cause them to put less money into their kids' education.

Distance to Schools: In Bangladesh's rural areas, a lot of kids must travel far to go to school. For
low-income families who cannot afford transportation or who do not feel comfortable sending their
children—especially girls—long distances, this is particularly difficult. Issues with Quality and
Teacher Shortages: Lack of qualified teachers is a common problem in rural schools. High student-
teacher ratios and a lack of resources result in subpar instruction even when teachers are available,
deterring low-income families from making additional investments.

Marriage over Education for Girls: In rural Bangladesh, early marriage remains a significant barrier
to girls’ education. Low-income families may see early marriage as a way to reduce financial
burdens, especially in areas where dowry practices are prevalent.

Cultural Pressures: Social expectations to prioritize household responsibilities over education for
both boys and girls often lead to school dropouts.

4.5: Comparing Investment Patterns in Primary vs. Secondary Education:

Primary Education: Bangladesh has achieved high levels of primary school enrollment (above 97%)
due to free primary education policies. However, income disparities affect attendance and
completion rates. For instance, children from lower-income households are 20% less likely to
complete primary school compared to higher-income peers (Bangladesh Bureau of Statistics, 2020).
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Secondary Education: The transition from primary to secondary education is heavily income-
dependent. In rural areas, the secondary school enrollment rate for children from wealthier families is
80%, compared to only 50% for low-income families

The graph illustrates the investment trends in primary and secondary education over the period from
2010 to 2020.

1. Primary Education Investment:

Represented by the blue line, investment in primary education shows a consistent increase over the
years. Starting at $50 billion in 2010, it steadily rose to $90 billion by 2020.

2. Secondary Education Investment:

Represented by the green line, secondary education investment also grew during this period, albeit at
a slightly slower rate compared to primary education. It increased from $40 billion in 2010 to $78
billion by 2020.

Throughout the period, primary education consistently received higher investment than secondary
education. The gap between the two narrowed slightly around 2016 but remained significant overall.

This graph highlights a stronger focus on funding primary education compared to secondary
education, possibly due to prioritizing foundational education in many education policies.
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4.6: Influence of Family Size on Education Spending:

In Bangladesh's rural areas, family size has a big impact on how much is spent on education.
Allocating funds for their children's education presents special difficulties for larger families, which
are frequently found in rural locations. Economic limitations, cultural standards, and restricted access
to financial and educational support networks exacerbate these difficulties. In the context of rural
Bangladesh, this section examines the ways in which family size affects educational investment
patterns and results.

1.The Effect of Resource Dilution: Larger families must split their limited resources among
numerous children. Because other household necessities like food, clothes, and healthcare take
precedence, this frequently results in lower per-child spending on schooling. Families may put
quantity before quality when resources are scarce. For example, they might choose to send their kids
to less expensive schools or forgo extra costs like extracurricular activities or private tutoring.

2. Gender Differences in School Expenditures: Preference for Boys Due to traditional

gender roles in rural Bangladesh, educational spending is frequently biassed in favour of males in
bigger families. Girls are more likely to be pulled out of school, especially at higher levels, to help
out around the house or because they get married young. Families frequently see females' education
as less important due to cultural norms and financial demands, particularly in bigger households with
fewer resources. A 2020 study found that 36% of girls from low-income households drop out of
school due to financial constraints, compared to 20% of boys.

3. Child labour and economic strains: Older children in bigger families are frequently
expected to make financial contributions through informal labour or agricultural work. Higher
dropout rates are often the result of this expectation colliding with their academic goals. Families
with a large number of children frequently experience a poverty cycle in which low income is
sustained throughout generations due to a lack of investment in education.

Families with many children often experience a cycle of poverty where low income is perpetuated
across generations due to limited educational investment. In larger families, older children are often
expected to contribute financially, either through informal labour or agricultural work, which
frequently conflicts with their educational goals and results in higher dropout rates.

4. Government and NGO Support: While government programs like the Primary Education
Stipend Program (PESP) aim to support low-income families, the assistance provided often fails to
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meet the needs of larger households. The fixed amount of financial aid per family does not account
for the number of children, making it insufficient for larger families.

NGOs and policymakers need to develop targeted support systems that consider family size, such as
scalable stipends or scholarships based on the number of school-going children in a household.

Chapter: 5 Results:

Percentage of households with education expenditures

Year Percentage of Households with Education Expenditures

2000 62%

2005 61%

2010 64%
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2016 59%

Source: HIES (2000-2016/17)

The table presents the percentage of households with education expenditures over different years. In
2000, 62% of households reported spending on education, which slightly decreased to 61% in 2005.
However, in 2010, the percentage peaked at 64%, indicating a rise in household education spending.
By 2016, the percentage dropped to 59%, suggesting a decline in the proportion of households
allocating expenditures for education. This trend reflects fluctuations in household spending on
education, potentially influenced by economic conditions, policy changes, or shifts in access to free
or subsidized education.

5.1 Expenditure category:

Level Fees Books Tutoring Transport Others Total

All 20% 23% 26% 4% 27% 100%
Primary 16% 25% 22% 1% 35% 100%
Secondary 19% 24% 31% 3% 23% 100%
Tertiary 31% 21% 19% 10% 18% 100%

Source: HIES (2000-2016/17)

The research findings highlight the distribution of educational expenses across different levels of
education—primary, secondary, and tertiary. Overall, the highest expenditure is on private tutoring
(26%) and "other" costs (27%), followed by books (23%) and fees (20%), while transport remains
the lowest at 4%. At the primary level, the largest share of expenses is allocated to "other" costs
(35%), followed by books (25%) and tutoring (22%), with transport being negligible (1%). In
secondary education, tutoring takes the highest portion (31%), indicating a heavy reliance on private
coaching, followed by books (24%) and fees (19%). In tertiary education, fees account for the
highest expenditure (31%), reflecting the increasing cost of higher education, followed by books
(21%) and tutoring (19%), with transport costs significantly higher (10%) compared to lower levels.
This data suggests that while tutoring remains a major expense in school education, university
students bear a heavier financial burden in terms of institutional fees.
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Source: (Alamgir, 2024)

The image presents key findings from research on primary and secondary education expenses and
study habits in Bangladesh. It highlights that in 2022, the annual cost for primary education was Tk
18,132, while in the first half of 2023, it was Tk 11,059. Similarly, another expense category
amounted to Tk 10,637 in 2022 and Tk 6,586 in the first half of 2023, indicating a significant
financial burden on families. Additionally, the research reveals that 92% of primary students and
93% of secondary students relied on guidebooks for their studies. Furthermore, 70% of primary
students and 76.5% of secondary students participated in private tuition, demonstrating a widespread
dependence on supplementary educational resources beyond the formal school system.

5.2 Government Budget on Education:

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Source: Ministry of Finance (Ministry of Finance, 2024).

The bar chart illustrates the government budget allocation for education from 2016 to 2022,
measured in USD. The data reveals a general upward trend, with the budget increasing from 111.1 in
2016 to a peak of 160.8 in 2021. Notable increments occurred between 2018 and 2019, as well as
from 2020 to 2021. However, a slight decline is observed in 2022, where the budget decreased to
149.0. This trend suggests that while government investment in education has generally increased
over the years, there may have been adjustments due to economic factors or policy changes affecting
the allocation in 2022.

5.3 Discussion:

This report was aimed to examine how household income contributes to educational investment as
well as examine how government support and future education decisions can reduce the burden of
education costs for low-income families in rural Bangladesh. By analyzing the findings, it was found
that a good enough amount of educational expenditure was provided by the household though the
rate of expenditure was fluctuating on the basis of year. 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 (Genoni, Bhatta, & Sharma, 2019). As per the latest Unesco Global Education Monitoring
Report, almost two-thirds of the total cost of education in Bangladesh are covered by households
(The Daily Star, 2022). The research figured out the categorical distribution of educational expenses
across different levels of education—primary, secondary, and tertiary. Overall, the highest
expenditure is on private tutoring and "other" costs, followed by books and fees, while transport
remains the lowest. Additionally, the research reveals that 92% of primary students and 93% of
 P a g e | 35

secondary students relied on guidebooks for their studies. Furthermore, 70% of primary students and
76.5% of secondary students participated in private tuition, demonstrating a widespread dependence
on supplementary educational resources beyond the formal school system which is paid by the
household. The implementation of elementary-level national exams has drawn harsh criticism for
fostering Bangladesh's burgeoning private tutoring sector and putting low-income students at a
disadvantage because their parents cannot pay these services. In Bangladesh, private tutoring is a
profitable and expanding industry. According to UNESCO, about 50% of the nation's secondary
pupils use private instructors. It has been called a "shadow education system" since it is so
widespread (Trines, 2022).

It was also found that state has been subsidizing the education sector to help the rural households or
marginalized people to send their child for education. Though the education budget had been
increasing year by year, it did not fully content the rural household to send their children for study. In
Bangladesh, elementary education up to Grade 5 is free, and disparities in access to primary
education have significantly decreased in recent years. State subsidies and the low opportunity cost
of children's lost wages make private elementary school expenses insignificant (Alam, 2000). This
points to the weakness of our education system where the state fails to bear a major share of the
educational expenses of its population, as it should (The Daily Star, 2022).

Even though the government has lately invested heavily in education and constructed hundreds of
schools, particularly in isolated rural regions, many changes are still in the process of being
implemented due to financial issues and poor school infrastructure. Teachers are frequently
undertrained, and many classes are overcrowded. With over 20% of students not finishing primary
school in 2016, dropout rates are high (Trines, 2022). In terms of the overall budget and GDP, the
FY2025 education budget was insignificant. Additionally, the updated budget's real expenditure
share has decreased over time, suggesting that the education sector has not received enough funding.
Furthermore, operating costs rather than development costs take up the majority of the budgeted
amount, which might lower the standard of instruction provided (Khatun, Saadat, & Mahbub, 2024).

Chapter 6: Key Findings :

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6.1 Key Findings: In this study we identified some key findings . These are in the below:

Influence of Family Income: The study confirms that family income plays a crucial role in
determining educational investment, affecting access to quality education, learning resources, and
extracurricular activities.

Government Subsidies: It highlights that while elementary education is free in Bangladesh, the
government has been subsidizing education to assist rural households. However, these efforts have
not fully alleviated the financial burdens faced by families.

Fluctuating Expenditure: The analysis reveals that household educational expenditure varies over
the years, indicating a complex relationship between income and educational spending.

Social Desirability Bias: The study notes a limitation regarding income-related questions, which
may lead to inaccuracies due to social desirability bias, affecting the reliability of the data collected.

Need for Policy Recommendations: The findings suggest that effective policies are necessary to
improve educational outcomes, particularly for marginalized communities, emphasizing the
importance of understanding the socioeconomic factors at play.

These findings contribute to a deeper understanding of the challenges and dynamics surrounding
educational investment in rural Bangladesh.

6.2 Limitations of the Study:

Social Desirability Bias: The study may face inaccuracies in income-related questions due to
participants' reluctance to disclose actual figures, leading to potential bias in the data collected.

Resource limitations: Limited resources can restrict the size and depth of data collection,
particularly in longitudinal studies, which may affect the comprehensiveness of the findings.

Structural Issues: The research highlights barriers to investment in education, such as deficits in
infrastructure, which can hinder access to quality education. This limitation may impact the
generalizability of the findings.

Research Gaps: While the paper addresses important aspects of the relationship between family
income and educational outcomes, it acknowledges that several gaps remain in the existing literature,
which could limit the study's contributions to the field.
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6.3 Recommendations of the Study:

Conditional Cash Transfers: Implement financial aid initiatives that provide conditional cash
transfers to low-income families, encouraging them to invest in their children's education.

Income-Based Subsidies: Establish income-based subsidies to alleviate the financial burden on

families, making education more accessible and affordable.

Community-Based Educational Initiatives: Develop community engagement programs that focus

on educational support, providing resources and assistance to families in rural areas.

Awareness Campaigns: Launch campaigns to raise awareness about the importance of education
and available resources, helping families make informed decisions regarding their children's
educational paths.

Support for Local Programs: Encourage the establishment of neighborhood-based programs that
facilitate educational access and resources for underprivileged families, fostering a supportive
community environment.

These recommendations aim to address the challenges faced by low-income families in accessing
quality education and to promote better educational outcomes for children in rural areas.

Chapter: 7
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7.1 conclusion of the Study: In This study we highlights the intricate relationship between family
income and educational investment in rural Bangladesh. It emphasizes that socioeconomic factors
significantly influence educational outcomes, which are crucial for the overall development of the region.

The findings reveal that while government efforts to subsidize education have increased, they have not
sufficiently alleviated the financial burden on low-income families. Many households still struggle to
afford educational expenses, leading to high dropout rates and limited access to quality education.

The study concludes with a call for targeted policy interventions, such as conditional cash transfers and
income-based subsidies, to support families in their educational investments. These measures are
essential for improving educational access and quality in rural areas.

The study also suggests that further research is needed to explore the long-term effects of educational
investments on socioeconomic development, particularly in rural contexts. Understanding these dynamics
can help in formulating effective policies that address educational disparities.

In summary, addressing the challenges faced by low-income families in education is vital for fostering
socioeconomic development and ensuring equitable access to quality education in rural Bangladesh.

Reference:
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