The Human Development Index (HDI) is the geometric mean of normalized indices for each of the three dimensions: Education Index, Life expectancy at birth and Gross National Income (GNI) per capita. As per Human Development Report of UNDP, Bangladesh was in 136th position among 189 countries in 2017. Education index is one of the important components of HDI of a country. The lack of education, forces the poor household to engage in less productive activities which results in lower GNI. Thus we can see that education has both direct and indirect influence on HDI of a country. Education index is the function of mean year of schooling and expected year of schooling. In 2015, dropout rates of secondary and primary schools were 40.29 percent, and 22.70 percent respectively. By reducing school dropout, the mean year of schooling of any country can be increased which results in a positive change in education index and thus human development index. The present research is an attempt to examine the influence of school dropout on Human Development Index. This study is based on both primary data and secondary data. Primary data have been collected through convenience sampling technique from 200 children who dropped out at different levels of primary and secondary schools in Bangladesh. Results show that the important reasons for school dropout are poor economic conditions, poor performance in school, less interest of parents, less interest of education, lack of school facilities, broken family, orphanage & migration of parents. The study recommends some ways to reduce school dropout. The study also suggests that the mean year of schooling can be increased through the establishment of residential schools, night schools, and through implementing learn and earn scheme by the Government of Bangladesh or other organizations.

Keywords: School dropout, Human development index, Education index, Mean year of schooling, Expected year of schooling.