Educational stream choice and labour market outcomes in Bangladesh: evidence from general and madrasah schooling

In countries with parallel education systems, educational stream choices can influence labour market outcomes and perpetuate inequality. This paper examines how attending religious (madrasah) versus general education institutions affects labour market performance in Bangladesh. Using nationally representative microdata from the 2022 Household Income and Expenditure Survey, we estimate differences in employment and hourly earnings using logit, OLS, and propensity score matching models. Uniquely, we distinguish between Alia and Kowmi madrasahs—the two main religious streams. Results reveal a persistent employment gap: madrasah-educated individuals are significantly less likely to be employed than general-educated peers, especially at the primary and tertiary levels. Conditional on employment, Alia graduates face no systematic earnings penalties, whereas Kowmi graduates earn substantially less. The findings highlight enduring educational stratification in Bangladesh and underscore the need for inclusive reforms linking religious and general education to labour market opportunities.