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Investment and Inequality in Pakistan's Education Sector

Author

Listed:
  • KHWAJA SARMAD

    (Pakistan Institute of Development Economics, Islamabad)

  • FAZAL HUSAIN

    (Pakistan Institute of Development Economics, Islamabad)

  • G. M. ZAHID

    (Pakistan Institute of Development Economics, Islamabad.)

Abstract

In this paper we present arguments for increasing expenditure on the education sector. We show that there exist large inequalities in the distribution of education servicesacross regions and across genders so that ensuring equal opportunity for all in education, either for normative or economic reasons, will require large additional investments in this sector. Wealso present evidence which showsthat while the rate of return to education in the country may not be high it has been increasing over time, so that higher expenditure on the education sector is also economically justifiable. Enrollments at all levels have been increasing over time, along with household and institutional expenditure on the education sector, which suggestsa greater willingness to invest in education. If the productivity of education is low then it would be natural to expect a decline over time in the willingnessof the people and the government to bear the costs of education. But first, we examine the evidence about the increasing unemployment of educated labour and show that this does not mean that there is an economic surplus of education in the country, nor that the education sector is overextended, but that it can be explained by 'search time'.

Suggested Citation

  • Khwaja Sarmad & Fazal Husain & G. M. Zahid, 1988. "Investment and Inequality in Pakistan's Education Sector," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 27(4), pages 678-686.
    • Handle: RePEc:pid:journl:v:27:y:1988:i:4:p:678-686
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    References listed on IDEAS

    as
    1. Guisinger, Stephen E. & Henderson, James W. & Scully, Gerald W., 1984. "Earnings, rates of return to education and the earnings distribution in Pakistan," Economics of Education Review, Elsevier, vol. 3(4), pages 257-267, August.
    2. Khalil A. Hamdani, 1977. "Education and the Income Differential. An Estimation for Rawalpindi City," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 16(2), pages 144-164.
    3. Shahrukh Rafi Khan & Syed Zahid Ali, 1986. "Some Findings about the Unemployed Highly Educated Persons in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 25(4), pages 731-739.
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