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The Role of Education and Income in Poverty Alleviation: A Cross-Country Analysis

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  • Pervez Zammurad Janjua

    (International Institute of Islamic Economics, International Islamic University, Islamabad, Pakistan.)

  • Usman Ahmad Kamal

Abstract

The 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.

Suggested Citation

  • Pervez Zammurad Janjua & Usman Ahmad Kamal, 2011. "The Role of Education and Income in Poverty Alleviation: A Cross-Country Analysis," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 16(1), pages 143-172, Jan-Jun.
    • Handle: RePEc:lje:journl:v:16:y:2011:i:1:p:143-172
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    More about this item

    Keywords

    Education; income; income distribution; poverty alleviation; GLS; Pakistan.;
    All these keywords.

    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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