The Role of Education and Income in Poverty Alleviation: A Cross-Country Analysis
AbstractThe existing literature on education and poverty considers mostly primary data from an income point of view. However, the benefits of education vary from a direct income effect to positive externalities, which can help reduce poverty. This paper uses panel data for 40 developing countries for the period 1999 to 2007, and estimates coefficients by applying the random effect generalized least squares (GLS) technique. The study concludes, first, that income growth plays a moderately positive role in alleviating poverty, but that income distribution does not play a key role in poverty alleviation in the sample overall. Second, it concludes that education is the most significant contributor to poverty alleviation.
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Bibliographic InfoArticle provided by Department of Economics, The Lahore School of Economics in its journal Lahore Journal of Economics.
Volume (Year): 16 (2011)
Issue (Month): 1 (Jan-Jun)
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Education; income; income distribution; poverty alleviation; GLS; Pakistan.;
Find related papers by JEL classification:
- I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
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