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Human Capital and Poverty in Pakistan: Evidence from the Punjab Province

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  • Ali, Sharafat
  • Ahmad, Najid

Abstract

The role of human capital (education and health) is recognized both in theoretical and empirical economic literature. Better education and health services enhance productivity and earnings of the workers. So the present study is an attempt to assess the impact of human capital in poverty alleviation. A cross-sectional data of 34 districts of Punjab province was used for the analysis. Three equations have been estimated by using the ordinary least square method. Education and health services are found to have poverty lessening impact in the economy. The results are statistically robust as adjudged by the R-squared and F-value. The error terms of the estimated models fulfill the standard OLS assumptions. It is suggested that imparting of knowledge, training and skills in the people empowers them. Improved human resources increase the productivity and earnings of the workers. Furthermore, improved human capital can play its role in reducing multidimensional poverty and its severity. The study suggests a substantial increase in education and health expenditure by the government. Proper campaign to increase the enrollment can be fruitful. Every born child has its basic right to obtain basic education and health services. Provision of education and health services can help the poor to break the vicious cycle of poverty.

Suggested Citation

  • Ali, Sharafat & Ahmad, Najid, 2013. "Human Capital and Poverty in Pakistan: Evidence from the Punjab Province," MPRA Paper 48876, University Library of Munich, Germany, revised Aug 2013.
    • Handle: RePEc:pra:mprapa:48876
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    File URL: https://mpra.ub.uni-muenchen.de/48876/1/MPRA_paper_48876.pdf
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    References listed on IDEAS

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    1. Zafar Mueen Nasir & Hina Nazli, 2000. "Education And Earnings In Pakistan," PIDE-Working Papers 2000:177, Pakistan Institute of Development Economics.
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    5. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    6. Robert J. Barro, 2013. "Education and Economic Growth," Annals of Economics and Finance, Society for AEF, vol. 14(2), pages 301-328, November.
    7. Thanasis Stengos & Aurangzeb Aurangzeb, 2008. "An empirical investigation of the relationship between education and growth in Pakistan," International Economic Journal, Taylor & Francis Journals, vol. 22(3), pages 345-359.
    8. Awan, Masood Sarwar & Malik, Nouman & Sarwar, Haroon & Waqas, Muhammad, 2011. "Impact of education on poverty reduction," MPRA Paper 31826, University Library of Munich, Germany.
    9. Musila, Jacob. & Belassi, Walid., 2004. "The impact of education expenditures on economic growth in Uganda: evidence from time series data," Journal of Developing Areas, Tennessee State University, College of Business, vol. 38(1), pages 123-133, September.
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    Cited by:

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    More about this item

    Keywords

    Multidimensional Poverty; Education; Health; Human capital; Punjab; Pakistan;
    All these keywords.

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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