IDEAS home Printed from
   My bibliography  Save this article

A Benefit Incidence Analysisof Public Spending on Education in PakistanUsing PSLM Data


  • Zahid Asghar

    () (National Institute of Banking and Finance (NIBAF), State Bank of Pakistan, Islamabad, Pakistan. The views expressed in this paper are those of the author and do not necessarily reflect the views of the State Bank of Pakistan and/or its subsidiaries.)

  • Mudassar Zahra

    () (Quaid-i-Azam University, Islamabad, Pakistan.)


Education is one of the most important means of economic development, and there is consensus among policymakers that it is better to be educated than not. The debate on education is not, therefore, whether it is good or bad, rather it centers on whether the state should intervene in its provision. Public provision of education at the school level is generally considered one of the most important investments for creating social opportunities to help the wider population actively participate in various economic activities. This study investigates whether public spending on education in Pakistan is pro-poor at various levels of schooling. We find that public spending at the primary and secondary level is progressive, while higher education spending is regressive. These results hold at the national and provincial level. Based on these findings, we recommend that the government increase its spending on primary, secondary, and technical education. Higher education, however, should be provided on merit, and the private sector should be encouraged to provide high-quality education.

Suggested Citation

  • Zahid Asghar & Mudassar Zahra, 2012. "A Benefit Incidence Analysisof Public Spending on Education in PakistanUsing PSLM Data," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 17(2), pages 111-136, July-Dec.
  • Handle: RePEc:lje:journl:v:17:y:2012:i:2:p:111-136

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Rana Ejaz Ali Khan & Karamat Ali, 2003. "Determinants of Schooling in Rural Areas of Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 8(2), pages 99-122, Jul-Dec.
    2. Hyun H. Son, 2006. "Assessing the pro-poorness of government fiscal policy in Thailand," Working Papers 15, International Policy Centre for Inclusive Growth.
    3. repec:lje:journl:v:2:y:2007:i:2:p:27-48 is not listed on IDEAS
    4. Heltberg, Rasmus & Simler, Kenneth & Tarp, Finn, 2001. "Public Spending and Poverty in Mozambique," WIDER Working Paper Series 063, World Institute for Development Economic Research (UNU-WIDER).
    5. Rosario G. Manasan & Janet S. Cuenca & Eden C. Villanueva-Ruiz, 2008. "Benefit Incidence of Public Spending on Education in the Philippines," Development Economics Working Papers 22660, East Asian Bureau of Economic Research.
    6. Manasan, Rosario G. & Cuenca, Janet S. & Villanueva-Ruiz, Eden C., 2008. "Benefit Incidence of Public Spending on Education in the Philippines," Discussion Papers DP 2008-08, Philippine Institute for Development Studies.
    7. Easterly, William, 2007. "The White Man's Burden: Why the West's Efforts to Aid the Rest Have Done So Much Ill And So Little Good," OUP Catalogue, Oxford University Press, number 9780199226115.
    8. Hyun H. Son, 2006. "Assessing the “Pro-Poorness†of Government Fiscal Policy in Thailand," Public Finance Review, , vol. 34(4), pages 427-449, July.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. repec:ksp:journ1:v:4:y:2017:i:2:p:203-214 is not listed on IDEAS
    2. Syed Shujaat AHMED & Asif JAVED, 2017. "The Effect of Public Sector Development Expenditures and Investment on Economic Growth: Evidence from Pakistan," Journal of Economics and Political Economy, KSP Journals, vol. 4(2), pages 203-214, June.

    More about this item


    Education; economic; development; Pakistan.;

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lje:journl:v:17:y:2012:i:2:p:111-136. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shahid Salahuddin) or (Mikhail Salazkin). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.