Rural-Urban Comparison of Human Resource Development in Northern Region of Bangladesh

Abstract

Human resource development is an important issue in the socioeconomic arena of Bangladesh. It has now gained greater importance in the context of globalization. This study makes a comparison between rural and urban areas in terms of socioeconomic and human resource development indicators. It also attempts to estimate the rates of return to schooling in both rural and urban areas. In doing so, we use primary data collected from field household survey, using multistage stratified random sampling techniques. Secondary data are also used to make an overview of the study area. The study collects data from 600 households, among them 300 are selected from rural area and the rest 300 are taken from urban area, using random sampling technique. In order to estimate the private rates of returns to education in both rural and urban areas, we apply the basic and extended version of Mincerian earnings models. We also use regression equation to assess the influence of schooling on the life expectancy in both the areas. Logistic regression model is used to assess the effect of schooling on sanitation status in both the areas. We use similar specification for both the rural and urban areas. Survey results show that the socioeconomic and human development related indicators such as schooling, income, life expectancy, access to better sanitation are significantly high in urban area compared to rural area. Through this study, it is found that the child mortality rates are higher in rural area than in urban, and mothers' education influences the rates of child mortality. As regards the level of literacy, there has been marked disparity between urban and rural population. Urban people receive more education and their earnings are higher than rural people.Empirical findings indicate that the HDI value of urban area is higher than rural area. Results of the Mincerian earnings function suggest that returns to education increase with years of schooling in both rural and urban areas. Results show that returns to education are generally positive and significant both in rural and urban areas. The returns to education in rural areas (7.8 percent) are slightly higher than those in urban areas (7.5 percent).The rate of return on tertiary education is higher compared to primary, secondary and higher levels of education in both areas. Experience of individuals exerts no significant effect on earnings in rural area while experience leads to increase in earnings significantly in the urban area but has a non-linear effect both in rural and urban area. Regression results report that there is a positive and significant relationship between schooling and life expectancy. When we include all levels of education using dummies in a single regression equation, results suggest that secondary education significantly contribute to increase life expectancy in rural area. Findings also suggest that secondary education in both rural and urban areas and higher education in urban area have positive relationship with life expectancy and are collectively significant. Regression result implies that there exists a positive and significant relationship between health expenditure and life expectancy in both the areas. Logistic regression results signify that higher level of educated individuals are more likely to practice sanitation than their lower educated counterparts in both rural and urban areas, and urban population are more likely to have access to improved sanitation compared to rural population. Among the professions, service holders are more likely to have better access to sanitation facilities in both the areas. So there are marked disparities between rural and urban areas in terms of socioeconomic and human resource development indicators. Right and effective policies that can reduce theinequality between rural and urban areas in terms of socioeconomic indicators are required. To eliminate urban-rural discrimination, budgetary allocation should be transferred to education and health in proportion to rural-urban population. So the government has to make investment in education, health and other social services for all classes of people, but much emphasis on the rural should be given.