Education and Finance | Articles on Education of Bangladesh | Articles on Education of Bangladesh

Information on the growth of income per person across the developing nations reveal that at least one important measure of skills is consistently correlated with future growth. In other words, the more educated the population, the greater the subsequent growth in economic wellbeing. Human capital begets more human capital. Certain general skills make people better at learning new skills. A skilled worker is more productive than a non-skilled one. At the level of individual workers, in fact, there is abundant evidence that the importance of skill to one's economic wellbeing has grown over the last several decades.

The growth in this pay differential is a major factor behind the increase in income inequality that has received so much attention of late. The apparent reasons for this widening dispersion are relevant here. Wages paid to workers at any particular skill level generally reflect the productivity of those workers' how much economic value their work creates. If the wages of higher-skilled workers have grown more rapidly than the wages of the less skilled, it must be that the work environment has changed in a way that has made the productivity of better-skilled workers rise more rapidly.

Abstract: The education and GDP indices are two components to determine the human development index set by the United Nations Development Programme (UNDP). There remains a high level of income and educational inequality between the countries of the world. This paper found that the correlation between Education index (EDI) and GDP index (GDPI) is significant for the high and medium GDPI countries; by contrast, it is not significant for the low GDPI countries. This paper finds that in general income differences play vital role to lead the discrimination in educational achievements with some exceptions and at the same time there remains a noteworthy differences among the education indices within the low-income countries.

Today, in the era of globalization, almost every country is related with each other and the overall development of the world cannot be measured separately – ideally this statement sounds great. By contrast, the reality is that one in four adults in the developing countries – 872 million people- are unable to read and write, and their numbers are growing. (OXFAM, 2000) Just one of the facts is enough to show the scenario of the precarious educational situation of the developing and undeveloped countries of the world. In addition, under the same sky there remains a huge `North-South Inequalities’ in education. For instance, per-capita spending on primary-school pupils in Nepal and India is about $12; in the US, it is $5130. (ibid) Nonetheless, it is universally accepted that education is one of the most vital instruments and components to stimulate as well as to measure the overall economic and human development of a country, it is visible that income differences play vital role to lead the discrimination in educational achievements. However, at the same time, achievement on education within the low-income countries is not the same at all.