Spatial Dimensions of Income Inequality and Poverty in Bangladesh: An Analysis of the 2005 Household Income and Expenditure Survey Data
Kazi Arif Uz Zaman Takahiro Akita
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.