INCOME INEQUALITY IN BANGLADESH
INCOME INEQUALITY IN BANGLADESH
Income Share of Households in Quintiles: Table 1 shows the percentage of income (in dollars) that goes to each household quintile. The income proportion of the 1st, 2nd, 3rd, and fourth quintiles has decreased over study. The top quintiles′ income share has risen. There are apparent indicators that the impoverished and the middle class have seen their income share decrease. Household income in the lower (1st) quintile declined from 7.20% in 1973-74 to 5.22% in 2010. Over the period, there was a total loss of 1.78 percentage points. The average annual decrease rate was -0.71%. In 1973-74, households′ revenue share of the second quintile was 11.30%, which decreased to 9.10% in 2010. The fall was 2.20 percentage points during the period, with an annual average declining rate of -0.54. Then income share of the third quintile dropped from 15.10 in 1973-74 by 1,77 percentage points to 13.33 in 2010 with an annual average reduction rate of –0.32%. At the yearly average rate of -0.27 percent, the household income shares in the 4th quintile declined. It is essential to consider that the annual income share loss rate varies inversely with the households′ economic position. The more impoverished families are, the more income they endure. This pattern persists up to the fourth quintiles based on the quintile classification. What happened to these households′ income share? The answer is in the household income gain in the top quintile. Increased revenues by an annual growth rate of 0.46 percent, which rose by a significant 7.38 percentage points from 44.40 in 1973-74 to 51.78 in 2010. This is not everything. We supplied information on the 9th and 10th decile income shares. In the ninth percentile, it turns out that householders did not gain the revenue distribution share. It looks as if in some years preceding, households had lost their percentage of their income in the ninth quintile but were only able to break in 2010. In rural and urban areas, similar losses and income gains by quintiles and deciles were seen. Earnings inequality, therefore, must be approved. Table 1. Income Share (Percent) Accruing to Household Quintile/Decile: National 1973-2010 YEAR 1st Quintile(bottom) 2nd Quintile 3rd Quintile 4th Quintile 5th Quintile (top) 9th Decile 10th Decile 1973-74 1981-82 1983-84 1985-86 1988-89 1991-92 1995-96 2000 2005 2010 7.00 6.64 7.20 6.99 6.64 6.52 5.71 6.15 5.26 5.22 11.30 10.72 11.75 11.18 10.89 10.89 9.83 9.68 9.10 9.10 15.10 15.20 15.94 15.07 15.05 15.53 13.88 13.17 13.13 13.33 22.80 22.12 21.73 20.70 21.23 22.19 20.50 18.79 19.79 20.56 44.40 45.32 43.38 46.04 46.20 44.96 50.08 52.01 52.71 51.79 16.00 15.79 15.08 14.58 15.20 15.64 15.40 14.00 15.07 15.94 28.40 29.53 28.30 31.46 31.00 29.32 34.68 38.01 37.64 35.85 Change During 1973-2010 -1.78 -2.20 -1.77 -2.24 7.38 -0.06 7.45 Annual rate of change 1973-2010 (Per cent) -0.71 -0.54 -0.32 -0.27 0.46 -0.01 0.72 The ratio of Income Shares in the top 10% to Bottom 10% This ratio typically shows inequality in income in the rural-urban context. This ratio has climbed from 10.14 in 1973-74 to 17.94 in 2010, indicating a real issue for the bottom 10% of households′ income share. The overall rise was 7,78 during with an average annual growth of 2.13% in the ratio. This ratio rose to 15.20 in 2010, from 11.00 in 1973-74, meaning a total 4.20 rise and an annual average of 1.06 percent growth. The urban ratio in 1973-74 was 9.12, up to 17.74 in 2010, which showed a total rise of 8.42 over the entire time. The average annual rise rate was 2.56%. The revenue proportion of households below 10 percent in urban regions has worsened significantly, compared to the low 10 percent income share of households in rural areas. In urban areas, the average yearly growth rate of inequality with the ratio appears to be larger (2,56%), compared to rural areas of 1,06%. In 2000 and 2005, there was a very high level of inequality in urban areas
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