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

Author

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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.

Suggested Citation

  • Awan, Masood Sarwar & Iqbal, Nasir & Muhammad, Waqas, 2011. "The impact of human capital on urban poverty: The case of Sargodha city," MPRA Paper 31829, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:31829
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    References listed on IDEAS

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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. Lilik Sugiharti, 2017. "The Determinants of Poverty: Case of Indonesia," GATR Journals gjbssr480, Global Academy of Training and Research (GATR) Enterprise.
    3. Atta Khan & Abdul Saboor & Abid Hussain & Shumaila Sadiq & Abdul Mohsin, 2014. "Investigating Multidimensional Poverty across the Regions in the Sindh Province of Pakistan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 119(2), pages 515-532, November.
    4. Kifayat Ullah & M. Tariq Majeed & Ghulam Mustafa, 2020. "Exploring Spatial Patterns and Determinants of Poverty: New Evidence from Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 59(3), pages 439-459.
    5. 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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    More about this item

    Keywords

    Human Capital; Urban Poverty; Sargodha; Pakistan;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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