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Human Capital Investments in Pakistan: Implications of Micro Evidence from Rural Households

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  • Yasuyuki Sawada

    (Ph.D. candidate in the Department of Economics, Stanford University, USA.)

Abstract

A number of cross-country studies suggest that the Pakistani aggregate human capital investments, measured by educational performance, are low relative to other countries of similar per capita income levels. This paper investigates the implications of micro evidence on schooling from rural Pakistan for an understanding of the cases of low human capital investments. The results of school-entrant and dropout regressions using household panel data indicate that the permanent and transitory income movements affect children’s schooling behaviour, indicating credit market imperfections. Hence, the human capital investments in rural Pakistan may be discouraged by poverty, combined with incompletely insured income volatility. Moreover, our analysis points out that there is a distinct gender difference in education.

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Bibliographic Info

Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

Volume (Year): 36 (1997)
Issue (Month): 4 ()
Pages: 695-712

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Handle: RePEc:pid:journl:v:36:y:1997:i:4:p:695-712

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  1. Summers, Lawrence H., 1992. "Investing in all the people," Policy Research Working Paper Series 905, The World Bank.
  2. Jacoby, Hanan G & Skoufias, Emmanuel, 1997. "Risk, Financial Markets, and Human Capital in a Developing Country," Review of Economic Studies, Wiley Blackwell, vol. 64(3), pages 311-35, July.
  3. Takashi Kurosaki & Marcel Fafchamps, 1998. "Insurance Market Efficiency and Crop Choices in Pakistan," Discussion Paper Series a358, Institute of Economic Research, Hitotsubashi University.
  4. Nancy Birdsall & David Ross & Richard Sabot, 1993. "Underinvestment in Education: How Much Growth has Pakistan Foregone?," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(4), pages 453-499.
  5. Morduch, Jonathan, 1994. "Poverty and Vulnerability," American Economic Review, American Economic Association, vol. 84(2), pages 221-25, May.
  6. Jere R. Behrman & Ryan Schneider, 1993. "An International Perspective on Pakistani Human Capital Investments in the Last Quarter Century," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(1), pages 1-68.
  7. Alderman, Harold, 1996. "Saving and economic shocks in rural Pakistan," Journal of Development Economics, Elsevier, vol. 51(2), pages 343-365, December.
  8. Robert M. Townsend, 1995. "Consumption Insurance: An Evaluation of Risk-Bearing Systems in Low-Income Economies," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 83-102, Summer.
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Cited by:
  1. Yasuyuki Sawada & Michael Lokshin, 2007. "Obstacles to School Progression in Rural Pakistan: An Analysis of Gender and Sibling Rivalry Using Field Survey Data," CIRJE F-Series CIRJE-F-484, CIRJE, Faculty of Economics, University of Tokyo.
  2. Sawada, Yasayuki & Lokshin, Michael, 2001. "Household schooling decisions in rural Pakistan," Policy Research Working Paper Series 2541, The World Bank.
  3. Blunch, Niels-Hugo & Canagarajah, Sudharshan & Goyal, Sangeeta, 2002. "Short- and long-term impacts of economic policies on child labor and schooling in Ghana," Social Protection Discussion Papers 25527, The World Bank.
  4. Zafar Mueen Nasir, 2002. "Returns to Human Capital in Pakistan: A Gender Disaggregated Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 41(1), pages 1-28.
  5. Hina Nazli & Shahnaz Hamid, 1999. "Concerns of Food Security, Role of Gender, and Intrahousehold Dynamics in Pakistan," PIDE-Working Papers 1999:175, Pakistan Institute of Development Economics.

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