Impact of education on poverty reduction

Awan, Masood Sarwar and Malik, Nouman and Sarwar, Haroon and Waqas, Muhammad (2011): Impact of education on poverty reduction. Published in: International Journal of Academic Research , Vol. 3, No. 1 (2011): pp. 659-664.

Abstract

Poverty is a stumbling block in the way of achieving economic development. Cognizant of the essence of Millennium Development Goals (MDGs) and ‘Education for All’ program, education is promulgated as the primary weapon against poverty prevalence. Hence it is important to seek out the effect of different levels of education upon poverty in Pakistan. This study evaluates the effect of different levels of education, experience and gender of the employed individuals (employers, self-employed, wage earners and unpaid family workers) as the determinants of poverty. The data for this task comes from the Household Integrated Economic Survey (HIES) for the years 1998-99 and 2001-02. A logistic regression model is estimated based on this data, with the probability of an individual being poor as the dependent variable and a set of educational levels, experience and gender as explanatory variables. It is found that experience and educational achievement is negatively related with the poverty incidence in both years. Also as we go for the higher levels of education the chances of a person being non-poor increases. Moreover, being a male person provides an advantage in retaining a position above poverty level.

• Item Type: MPRA Paper
• Language: English
• Keywords: Poverty, Education, Pakistan
• Subjects: H - Public Economics > H7 - State and Local Government ; Intergovernmental Relations > H75 - State and Local Government: Health ; Education ; Welfare ; Public Pensions; I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty; I - Health, Education, and Welfare > I2 - Education and Research Institutions > I21 - Analysis of Education

References

World Bank (1993) “The East Asian Miracle: Economic Growth and Public Policy”, Policy Research Report, Oxford University Press.

Jeffery, R. and Basu, M.A. (1996). Girls' Schooling, Women's Autonomy and Fertility Change in South Asia. New Delhi: Sage Publications.

Bramley,G. and Karley, K.N. (2005). Home-Ownership, Poverty and Educational Achievement: Individual, School and Neighbourhood Effects. CRSIS Research Report, www.crsis.hw.ac.uk.

UNESCO (2007) “Education For All Global Monitoring Report 2007”, www.unesco.org.

Tilak, J.B.G. (2005). Post Elementary Education, Poverty and Development in India. International Journal of Educational Development, 27,435-445.

UNESCO-PROAP (1998) “Basic Education for Empowerment of the Poor” Bangkok.

Colclough, C. Al-Samarrai S., Rose, P. and Tembon. M. (2003). Achieving Schooling for all in Africa: Costs, Commitment and Gender. Aldershot : Ashgate Press.

Colclough, C. (2005). Does Education Abroad Help to Alleviate Poverty at Home? An Assessment. The Pakistan Development Review, 44,439-454.

Mughal,W.H. (2007). Human Capital Investment and Poverty Reduction Strategy in Pakistan. Labour and Management in Development, 7,61-77.

Nasir, Z. M. and Nazli, H. (2000). Education and Earnings in Pakistan. Research Report No. 177. Pakistan Institute of Development Economics (PIDE).

Qureshi, S.K. and Arif, G.M. (2001). Profile of Poverty in Pakistan 1998-99. MIMAP Technical Paper Series No. 5. Pakistan Institute of Development Economics, Islamabad.

Abuka, C.A., Ego, M.A., Opolot, J. and Okello, P. (2007). Determinants of Poverty Vulnerability in Uganda, Discussion Paper No. 203. Institute for International Integration Studies.

Haq, R. (2005). An Analysis of Poverty at the Local Level. The Pakistan Development Review, 44,1093-1109.

Kurosaki, T. (2001). Effects of Education on Farm and Non-Farm Productivity in Rural Pakistan. Discussion Paper No. 2001-002, Foundation for Advanced Studies on International Development (FASID).

Kurosaki, T. and Khan, H. (2006). Human Capital, Productivity, and Stratification in Rural Pakistan. Review of Development Economics, 10,116-134.

Jamal, H. (2005). In Search of Poverty Predictors: The Case of Urban and Rural Pakistan. The Pakistan Development Review, 44,37-55.

Okojie, C.E.E. (2002). Gender and Education as Determinants of Household Poverty in Nigeria. Discussion Paper No. 2002/37. World Institute for Development Economics Research (WIDER).

Rodriguez, A.G. and Smith, S.M. (1994). A Comparison of Determinants of Urban, Rural and Farm Poverty in Costa Rica. World Development, 22,381-97.

Senia, N. and Godwell, N. (2006). Macroeconomics, (Adult) Education, and Poverty Eradication in Southern Africa. Review of Education, 52,305-322.

Bonal, X. (2007). On Global Absences: Reflections on the Failings in the Education and Poverty Relationship in Latin American Countries. International Journal of Educational Development, 27,86-100.