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The impact of human capital on urban poverty: The case of Sargodha city

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  • Awan, Masood Sarwar
  • Iqbal, Nasir
  • Muhammad, Waqas

Abstract

The positive relationship between human capital and income/wages has been supported by empirical research. Millennium Development Goals (MDGs) and the Poverty Reduction Strategy Paper (PRSP) enormously emphasize on human capital for curbing poverty. The economic development in East Asian countries is also linked with investment in education for the development of human capital. This study is designed to investigate the relationship of different levels of education and experience upon urban poverty at medium sized city in Pakistan such as Sargodha. A survey-based analysis was carried out on a sample of 330 households. Poverty status of the individual is defined by using adjusted official poverty line. Results show that education and experience is negatively related with the poverty status of individuals and this fact sustains even in separate gender estimates as well. This implies education of poor is necessary in breaking the vicious circle of poverty. Combined effort by public, private, community participation and NGO’s with special focus on elementary (Primary and middle) education is suggested for reducing poverty by increasing the productivity of the poor through education.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 31829.

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Date of creation: 2011
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Publication status: Published in Journal of Sustainable Development 1.4(2011): pp. 143-150
Handle: RePEc:pra:mprapa:31829

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Keywords: Human Capital; Urban Poverty; Sargodha; Pakistan;

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  1. Theodore W. Schultz, 1960. "Capital Formation by Education," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 68, pages 571.
  2. Masood Sarwar Awan & Nasir Iqbal, 2010. "Determinants of Urban Poverty : The Case of Medium Sized City in Pakistan," Development Economics Working Papers 22827, East Asian Bureau of Economic Research.
  3. Hungerford, Thomas & Solon, Gary, 1987. "Sheepskin Effects in the Returns to Education," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 175-77, February.
  4. G. M. Arif & Faiz Bilquees, 2007. "Chronic and Transitory Poverty in Pakistan: Evidence from a Longitudinal Household Survey," The Pakistan Development Review, Pakistan Institute of Development Economics, Pakistan Institute of Development Economics, vol. 46(2), pages 111-127.
  5. Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 13(3), pages 827-46, September.
  6. Zafar Mueen Nasir & Hina Nazli, 2000. "Education And Earnings In Pakistan," PIDE-Working Papers, Pakistan Institute of Development Economics 2000:177, Pakistan Institute of Development Economics.
  7. Blanca Zuluaga, 2007. "Different Channels Of Impact Of Education On Poverty: An Analysis For Colombia," BORRADORES DE ECONOMÍA Y FINANZAS 002351, UNIVERSIDAD ICESI.
  8. Rashida Haq, 2005. "An Analysis of Poverty at the Local Level," The Pakistan Development Review, Pakistan Institute of Development Economics, Pakistan Institute of Development Economics, vol. 44(4), pages 1093-1109.
  9. Awan, Masood Sarwar & Malik, Nouman & Sarwar, Haroon & Waqas, Muhammad, 2011. "Impact of education on poverty reduction," MPRA Paper 31826, University Library of Munich, Germany.
  10. Takashi Kurosaki & Humayun Khan, 2006. "Human Capital, Productivity, and Stratification in Rural Pakistan," Review of Development Economics, Wiley Blackwell, Wiley Blackwell, vol. 10(1), pages 116-134, 02.
  11. Lockheed, Marlaine E & Jamison, Dean T & Lau, Lawrence J, 1987. "Farmer Education and Farm Efficiency: Reply," Economic Development and Cultural Change, University of Chicago Press, University of Chicago Press, vol. 35(3), pages 643-44, April.
  12. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 70, pages 9.
  13. Lockheed, Marlaine E & Jamison, Dean T & Lau, Lawrence J, 1980. "Farmer Education and Farm Efficiency: A Survey," Economic Development and Cultural Change, University of Chicago Press, University of Chicago Press, vol. 29(1), pages 37-76, October.
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Cited by:
  1. Safana, Shaheen & Masood, Sarwar & Muhammad, Waqas & Amir, Aslam, 2012. "Riding for Survival: A Worst Form of Human Trafficking," MPRA Paper 43594, University Library of Munich, Germany.
  2. Safana, Shaheen & Masood, Sarwar & Muhammad, Waqas & Amir, Aslam, 2012. "Economic Analysis of Earnings in Pakistan: A Case of Sargodha District," MPRA Paper 41923, University Library of Munich, Germany.

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