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Education Inequality and Economic Growth: Framework for the Evaluation of Pakistan’s Education Policy

  • Hassan, Rubina
  • Mirza, M. Shahzad

This paper attempts to substantiate the Education-Growth relationship with a view to evaluate Pakistan’s Education Policy over the last two decades. With a view to the inadequacy of the generally used measures of education, we first estimate the no enrollment ratios, the average schooling years, the standard deviation of education and educational gini for Pakistan and its four provinces across gender domains as measures of the level and spread of schooling for 1973-1998. Then using these measures we estimate some standard econometric relations to understand the evolution of the distribution of education, its impact on economic growth and the role of government policy therein. The paper confirms the existence of a negative relationship between average schooling years and inequality in educational opportunities, along with a strong support for the existence of the Education Kuznets Curve both as a time series and as a cross sectional phenomenon for Pakistan and its four provinces across gender domains. The paper also corroborates the education-growth hypothesis through panel estimation of a modified Macro-Mincerian function. We find that the commitment of the public sector to education provision has a very strong impact both on educational inequality and on the rate of economic growth. Our estimates establish the failure of Pakistan’s education policy on account of the inefficiency of current education expenditure and shows that if the declining commitment to education does not reverse and the public sector does not take care of its inefficiency, then Pakistan will suffer in terms of reduced economic growth and high educational inequality for future generations. The paper recommends that Pakistan’s education reforms should focus on primary education provision for all rather than on higher education for a limited segment of the population

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 26351.

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Date of creation: 06 Feb 2005
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Handle: RePEc:pra:mprapa:26351
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  1. Robert J. Barro & Jong-Wha Lee, 1993. "International Comparisons of Educational Attainment," NBER Working Papers 4349, National Bureau of Economic Research, Inc.
  2. Alan Krueger & Mikael Lindahl, 2000. "Education for Growth: Why and For Whom?," Working Papers 808, Princeton University, Department of Economics, Industrial Relations Section..
  3. Ram, Rati, 1990. "Educational Expansion and Schooling Inequality: International Evidence and Some Implications," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 266-74, May.
  4. Thomas, Vinod & Wang, Yan & Fan, Xibo, 2001. "Measuring education inequality - Gini coefficients of education," Policy Research Working Paper Series 2525, The World Bank.
  5. Benabou, R., 1996. "Inequality and Growth," Working Papers 96-22, C.V. Starr Center for Applied Economics, New York University.
  6. Barro, R.J., 1989. "Economic Growth In A Cross Section Of Countries," RCER Working Papers 201, University of Rochester - Center for Economic Research (RCER).
  7. Behrman, Jere R & Birdsall, Nancy, 1983. "The Quality of Schooling: Quantity Alone is Misleading," American Economic Review, American Economic Association, vol. 73(5), pages 928-46, December.
  8. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May.
  9. Levison, D. & Lam, D., 1990. "Declining Inequality In Schooling In Brazil And Its Effects On Inequality In Earning," Papers 618, Yale - Economic Growth Center.
  10. Eric A. Hanushek & Dongwook Kim, 1995. "Schooling, Labor Force Quality, and Economic Growth," NBER Working Papers 5399, National Bureau of Economic Research, Inc.
  11. Glomm, Gerhard & Ravikumar, B, 1992. "Public versus Private Investment in Human Capital Endogenous Growth and Income Inequality," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 818-34, August.
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