JKKNIUJSS

Income Dynamics And Educational Outcomes Of Children In The Informal Sector: Evidence From Tangail, Bangladesh  

Authors
Keywords:
Parental Income, Children’s Education, Informal Sector, Child Labor, Educational Inequality, Household Income Dynamics
Abstract

This study examines the impact of parental income on children’s education in the informal sector of Tangail Sadar Upazila, Bangladesh. Data were collected from 162 households through a structured questionnaire survey conducted in July 2022. The United Nations (2005) recommended formula was applied to determine the sample size, and households were selected using random sampling techniques. Findings indicate that parental income has a significant positive effect on children’s educational outcomes. In households with monthly incomes below Tk. 8,000, only 28.6% of children are enrolled in school, 71.4% are out of school, and 81.6% are engaged in income-generating activities. In the Tk. 8,000–13,000 income range, 84.6% of children are enrolled, 15.4% are out of school, and 30% participate in income-generating work. All children from households earning above Tk. 13,000 are enrolled in school, with no involvement in paid work. Income changes also strongly influence education: when income increased, 95.4% of children were enrolled, while only 33.3% were enrolled when income declined. A Chi-Square test confirms a statistically significant relationship between parental income change and children’s education (χ²  (2,384) = 131.881, p < .000), with Cramer’s V = 0.58 indicating a strong effect. Parental perceptions reveal that 72.8% value education for overcoming poverty and improving life prospects, while 14.2% cite high costs as a barrier, and 13% consider extended schooling unnecessary. The study concludes that parental income is a critical determinant of children’s educational attainment in the informal sector and recommends policies to expand affordable education, provide income support to low-income households, and strengthen vocational training to break the cycle of poverty.

Author Biographies
  1. Ashiqur Rahman, Mawlana Bhashani Science and Technology University

    Lecturer, Department of Economics

  2. Md. Mahbub Alam, Stamford University Bangladesh

    Department of Economics

  3. Md Nazmus Sadekin, Mawlana Bhashani Science and Technology University

    Professor, Department of Economics

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Published
04/22/2026
Data Availability Statement

The data that support the findings of this study are available on request from the corresponding author.

Issue
Vol. 5 No. 1 (2026): JKKNIU Journal of Social Sciences
Section
Articles

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