Educational Expansion and Declining Expenditure Inequality in Nepal over the Past Two Decades

Takahiro Akita and Avadhesh Kumar Shukla
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Avadhesh Kumar Shukla: IUJ Research Institute, International University of Japan

No EMS_2025_04, Working Papers from Research Institute, International University of Japan

Abstract: Nepal has made significant progress in reducing inequality in economic well-being. Meanwhile education has expanded substantially. This study analyzes the role of educational expansion in reducing expenditure inequality using data from the three rounds of the Nepal Living Standards Survey. It conducts a two-stage hierarchical inequality decomposition analysis by location and education. The expansion of basic education in rural areas contributed significantly to reducing overall inequality. The government should further promote basic education, while improving its quality and enhancing the socio-economic status of households. The government should also develop socio-economic infrastructure and establish efficient transportation networks throughout the country.

Keywords: educational expansion; expenditure inequality; Nepal; urban-rural dimensions; two-stage inequality decomposition by location and education (search for similar items in EconPapers)
JEL-codes: I24 I25 O15 O18 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2025-07
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