for (i) admission into school, (ii) receiving free books, (iii) receiving scholarships, and ...nally (iv) implicit bribe payment in the form of paying fees or donations without receipts. Using responses to these questions, we de...ne an overall propensity to pay bribes for education services as a dummy which takes a value of unity if household reported to pay any of these four types of explicit or implicit bribe and zero otherwise. Since paying without receipts is common in Bangladesh, and many people may not view it as paying bribes, we de...ne an alternative propensity to pay bribe variable by excluding ‘paying without receipt’as a bribe category. We also make a distinction between bribe paid for admission and all other types of bribe. Appendix Table A1 reports the summary statistics for di¤erent bribes related to education (please see online appendix). About 49 percent of the households reported to have paid bribe including payments made without receipts.<sup>26</sup> Among the sub-categories, bribe for school admission is reported by 11 percent, for free books by 6 percent and for drawing scholarship money by 4 percent of the households. All together 18 percent of the households paid bribe for admission, free books and scholarships.<sup>27</sup> About 40 percent of the households reported making a payment without receipts. In the empirical analysis we present results on both the overall propensity to pay bribe (including payment without receipts) and the sub-categories as well. As to be expected, the sample used for the analysis of the intensive margin (i.e., the amount of bribes paid) are smaller, about 1832 households, because about half of the households with children in school do not pay bribes. The amount of bribe paid includes payments made for any of the four di¤erent categories of bribe de...ned above. Among the households who reported positive amount of bribe payment, on average a household paid about Taka 241 during the survey year. To get a better sense of the ...nancial burden imposed on the poor, it is instructive to look at the average bribe paid as a proportion of the household savings. The average bribes paid in schools is 9 percent of average annual household savings, while for the ...rst and second quintile it amounts to 61 percent and 27 percent of annual household savings respectively. Bribes

> 26 The Transperancy International’s Bangladesh report (2009) found that “36.5 per cent of students have made unauthorised payments to attend school despite public education being free through the upper secondary level”. This is consistent with ...nding using 2010 TI data as well. However Global Corruption Report by TI (2013) reports average propensity to pay bribe for education to be about 12 percent. It is however not clear what types of bribe payments are used in GCR(2013) as it has not been explained in the report. This estimate of propensity to bribe payment (12 percent) is close to our estimate of propensity to pay bribe for admission (11 percent).

> 27 The higher bargaining power of richer households may result from the fact that poorer households may not be fully aware of the amount of fees and payments they are supposed to make. Note that these subcategories (admission, scholarship and free books) do not require any information advantage on the part of the richer households.

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