Hassan, Rubina and Mirza, M. Shahzad (2005): Education Inequality and Economic Growth: Framework for the Evaluation of Pakistan’s Education Policy. Published in: International Journal of Human Development , Vol. Volume, No. January-June 2007, No.1 : pp. 37-60.
Download (228kB) | Preview
This paper attempts to substantiate the Education-Growth relationship with a view to evaluate Pakistan’s Education Policy over the last two decades. With a view to the inadequacy of the generally used measures of education, we first estimate the no enrollment ratios, the average schooling years, the standard deviation of education and educational gini for Pakistan and its four provinces across gender domains as measures of the level and spread of schooling for 1973-1998. Then using these measures we estimate some standard econometric relations to understand the evolution of the distribution of education, its impact on economic growth and the role of government policy therein. The paper confirms the existence of a negative relationship between average schooling years and inequality in educational opportunities, along with a strong support for the existence of the Education Kuznets Curve both as a time series and as a cross sectional phenomenon for Pakistan and its four provinces across gender domains. The paper also corroborates the education-growth hypothesis through panel estimation of a modified Macro-Mincerian function. We find that the commitment of the public sector to education provision has a very strong impact both on educational inequality and on the rate of economic growth. Our estimates establish the failure of Pakistan’s education policy on account of the inefficiency of current education expenditure and shows that if the declining commitment to education does not reverse and the public sector does not take care of its inefficiency, then Pakistan will suffer in terms of reduced economic growth and high educational inequality for future generations. The paper recommends that Pakistan’s education reforms should focus on primary education provision for all rather than on higher education for a limited segment of the population
|Item Type:||MPRA Paper|
|Original Title:||Education Inequality and Economic Growth: Framework for the Evaluation of Pakistan’s Education Policy|
|Keywords:||Economic Growth; Education Inequality; Education Policy; Panel Estimation|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development
D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources ; Human Development ; Income Distribution ; Migration
I - Health, Education, and Welfare > I2 - Education and Research Institutions > I21 - Analysis of Education
I - Health, Education, and Welfare > I2 - Education and Research Institutions > I28 - Government Policy
C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C33 - Panel Data Models ; Spatio-temporal Models
|Depositing User:||Rubina Hassan|
|Date Deposited:||03 Nov 2010 16:07|
|Last Modified:||20 Mar 2017 21:17|
Aghion, P. and P. Howitt, 1998, “Endogenous Growth Theory”, MIT Press, Cambridge Massachusetts.
Atkinson, A. B. and J. Stiglitz, 2001, “Handbook of Income Distribution”, Handbooks in Economics Series, Elsevier Publications, Amsterdam.
Benabou, R., 1996a, “Inequality and Growth”, in B. S. Bernanke and J. Rotemberg, eds., NBER Macroeconomics Annual, MIT Press.
Barro, R. J., 1991, “Economic Growth in a Cross Section of Countries”, Quarterly Journal of Economics, (May 91): pp 407-443.
Barro, R. J. and J. W. Lee, 1993, “International Comparisons of Educational Attainment” Journal of Monetary Economics, 32, No.3 (December 93): pp 363-394.
Barro, R. J. and J. W. Lee, 1997, “International Measures of Schooling Years and Schooling Quality.” American Economic Review; Papers and Proceedings, 86(2): pp 218-223.
Barro, R. J. and X. Sala-i-Martin, 1995, “Economic Growth”, McGraw Hill, New York.
Behrman, J. and N. Birdsall, 1983, “The Quality of Schooling. Quantity Alone Is Misleading.” American Economic Review; 73(5):928-946.
Bengali, K., 1995, “Regional Accounts of Pakistan 1973-1992”, Ph.D. Dissertation, Department of Economics, University of Karachi, Karachi.
Bengali, K., 2002, “Regional Accounts of Pakistan 1973-2000”, Working Paper, Social Policy Development Center, Karachi.
Cowell, F. A., 1998, “Measurement of Inequality”, in A. B. Atkinson and J. Stiglitz, eds., Handbook of Income Distribution, Amsterdam.
Federal Bureau of Statistics, 1998, “Fifty Years of Pakistan Statistics: Volume I--Volume IV”, Federal Bureau of Statistics, Islamabad.
Glomm, G. and B. Ravikumar, 1992, “Public vs. Private Investment in Human Capital: Endogenous Growth and Income Inequality”, Journal of Political Economy, 100 (4): pp 818-834.
Government of Pakistan, 1998, “Pakistan Economic Survey”, Finance Division, Economic Adviser’s Wing, Islamabad.
Government of Pakistan, 2001, “Poverty Reduction Strategy Papers”, Islamabad.
Government of Pakistan, 2004, “Pakistan Economic Survey”, Finance Division, Economic Adviser’s Wing, Islamabad.
Hanushek, E. A. and D. Kim, 1995, “Schooling, Labor Force Quality, and Economic Growth.” National Bureau Of Economic Research Paper # 5399.
Hassan, R. and M. Shahzad, 2004c, “An Econometric Appraisal of Poverty and Inequality in Pakistan”, Working Paper, Department of Economics, University of Karachi, Karachi.
Kreuger, A. B. and M. Lindahl, 2001, “Education for Growth: Why and for Whom ?”, Journal of Economic Literature, XXXIX (December 2001): pp 1101-1136.
Lam, D. and D. Levinson, 1991, “Declining Inequality in Schooling in Brazil and its Effects on Inequality in Earnings”, Journal of Development Economics, 37(1-2): pp 199-255.
Litchfield, J., 1999, “Inequality: Methods and Tools”, World Bank Staff Working Papers, World Bank, Washington, D. C., www.worldbank.org/poverty/inequal/index.htm
Lockheed, E. M. and A. M. Verspoor, 1991, “Improving Primary Education in Developing Countries”, Oxford University Press, New York.
Londoño, J. L., 1990, “Kuznetsian Tale With Attention to Human Capital” Paper presented at The Third Inter-American Seminar in Economics, Rio De Janeiro, Brazil.
López, R., V. Thomas, and Y. Wang, 1998. “Addressing the Education Puzzle: The Distribution of Education and Economic Reform.” Policy Research Working Paper #2031, The World Bank, Washington, D.C.
Mankiw, N. G., D. Romer and D. Weil, 1992, “A Contribution to the Empirics of Economic Growth”, Quarterly Journal of Economics, (May 92): pp 407-437.
Maas, J. L. and C. Criel, 1982, “Distribution of primary school Enrolments in Eastern Africa”, World Bank Staff Working Papers No. 511, The World Bank, Washington D.C.
Psacharopoulos, G. and A. Arriagada, 1986, “The Educational Attainment of the Labor Force: An International Comparison.” The World Bank Report No. EDT38, (October 86), The World Bank, Washington D. C.
Ram, R., 1990, “Educational Expansion and Schooling Inequality: International Evidence and Some Implications”, The Review of Economics and Statistics, 72(2): pp 266-274.
Rosthal, R. A., 1978, “Measures of Disparity: A Note” Research Report published by Killalea Associates, Inc. Available at EDRS Price, ED149482, ERIC database.
Sheret, M., 1988, “Equality Trends and Comparisons for the Education System of Papua New Guinea”, Studies in Educational Evaluation, v.14 (1):pp 91-112.
Thomas, V., Y. Wang and X. Fan, 2000, “Measuring Education Inequality: Gini Coefficient of Education”, World Bank Development Forum Working Paper, The World Bank, Washington D. C.
World Bank, 2003, “World Development Indicators”, The World Bank, Washington D. C.
World Bank, 2004, “World Development Indicators”, The World Bank, Washington D. C.
Yitzhaki, S., 1997, “More than a Dozen Alternative Ways of Spelling the Gini”, Research on Economic Inequality, 8, 1998: pp 13-30.