NEXUS BETWEEN EDUCATIONAL ATTAINMENT AND INCOME IN KHULNA CITY: AN EMPIRICAL EXPLORATION

Abstract

The economic development of any country not only depends on physical capital but also human capital. Education is an important and valuable factor of human capital development and overall improvement of society. This paper aims to examine the determinants of education and its effect on income level in Khulna city. The sample size is 250 service holders. Therefore, the study estimates are based on the method of ordinary least squares (OLS) and two stage least squares (2SLS). The results suggest that parents’ education is important factors of education attainment. Moreover, education and experience are positively correlated with the income. This study has recommended that the parents should be educated and conscious about the educational environment for their child. Moreover, it is essential to improve the cognitive ability, training facilities, institutional opportunities, result which also affect the income level. To get a good atmosphere, different education policies should be taken by the authority like – inclusive policy, mandatory higher secondary education and subsidy for students.