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Impact of education on poverty reduction


  • Awan, Masood Sarwar
  • Malik, Nouman
  • Sarwar, Haroon
  • Waqas, Muhammad


Poverty is a stumbling block in the way of achieving economic development. Cognizant of the essence of Millennium Development Goals (MDGs) and ‘Education for All’ program, education is promulgated as the primary weapon against poverty prevalence. Hence it is important to seek out the effect of different levels of education upon poverty in Pakistan. This study evaluates the effect of different levels of education, experience and gender of the employed individuals (employers, self-employed, wage earners and unpaid family workers) as the determinants of poverty. The data for this task comes from the Household Integrated Economic Survey (HIES) for the years 1998-99 and 2001-02. A logistic regression model is estimated based on this data, with the probability of an individual being poor as the dependent variable and a set of educational levels, experience and gender as explanatory variables. It is found that experience and educational achievement is negatively related with the poverty incidence in both years. Also as we go for the higher levels of education the chances of a person being non-poor increases. Moreover, being a male person provides an advantage in retaining a position above poverty level.

Suggested Citation

  • Awan, Masood Sarwar & Malik, Nouman & Sarwar, Haroon & Waqas, Muhammad, 2011. "Impact of education on poverty reduction," MPRA Paper 31826, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:31826

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    References listed on IDEAS

    1. Takashi Kurosaki & Humayun Khan, 2006. "Human Capital, Productivity, and Stratification in Rural Pakistan," Review of Development Economics, Wiley Blackwell, vol. 10(1), pages 116-134, February.
    2. Okojie, Christiana E.E., 2002. "Gender and Education as Determinants of Household Poverty in Nigeria," WIDER Working Paper Series 037, World Institute for Development Economic Research (UNU-WIDER).
    3. Rodriguez, Adrian G. & Smith, Stephen M., 1994. "A comparison of determinants of urban, rural and farm poverty in Costa Rica," World Development, Elsevier, vol. 22(5), pages 1-1, May.
    4. Zafar Mueen Nasir & Hina Nazli, 2000. "Education And Earnings In Pakistan," PIDE-Working Papers 2000:177, Pakistan Institute of Development Economics.
    5. Rashida Haq, 2005. "An Analysis of Poverty at the Local Level," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 44(4), pages 1093-1109.
    6. Charles Augustine Abuka & Michael Atingi-Ego & Jacob Opolot & Patrick Okello, 2007. "Determinants of poverty vulnerability in Uganda," The Institute for International Integration Studies Discussion Paper Series iiisdp203, IIIS.
    7. Christopher Colclough, 2005. "Does Education Abroad Help to Alleviate Poverty at Home? An Assessment," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 44(4), pages 439-454.
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    Cited by:

    1. Hati, Koushik Kumar, 2012. "Can Poverty be Educated Out?," MPRA Paper 57374, University Library of Munich, Germany.
    2. Awan, Masood Sarwar & Iqbal, Nasir & Muhammad, Waqas, 2011. "The impact of human capital on urban poverty: The case of Sargodha city," MPRA Paper 31829, University Library of Munich, Germany.
    3. Atta Ullah Khan & Abdul Saboor & Ikram Ali & Wasim Shahid Malik & Khalid Mahmood, 2016. "Urbanization of multidimensional poverty: empirical evidences from Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(1), pages 439-469, January.
    4. Abdalali Monsef & Abolfazl Shahmohammadi Mehrjardi, 2015. "Investigation Development Degree of Esfahan Province of Iran in Terms of Educational Indices," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 5(1), pages 37-44, January.
    5. 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.
    6. Atta Khan & Abdul Saboor & Abid Hussain & Shumaila Sadiq & Abdul Mohsin, 2014. "Investigating Multidimensional Poverty across the Regions in the Sindh Province of Pakistan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 119(2), pages 515-532, November.
    7. John Anyanwu, 2013. "Working Paper 181 - Determining the Correlates of Poverty for Inclusive Growth in Africa," Working Paper Series 979, African Development Bank.
    8. Nazeem ud din & Khalid Zaman & Shagufta Ashraf & Faiza Sajjad & Sundas Saleem & Uzma Raja, 2015. "Quality versus quantity in health care and educational reforms: combating poverty," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(1), pages 267-293, January.
    9. Safana, Shaheen & Masood, Sarwar & Muhammad, Waqas & Amir, Aslam, 2012. "Economic Analysis of Earnings in Pakistan: A Case of Sargodha District," MPRA Paper 41923, University Library of Munich, Germany.
    10. repec:cbu:jrnlec:y:2017:v:4:p:204-210 is not listed on IDEAS
    11. Taha Zaghdoudi & Abdelaziz Hakimi, 2017. "Does external debt- poverty relationship confirm the debtoverhang hypothesis for developing counties?," Economics Bulletin, AccessEcon, vol. 37(2), pages 653-665.

    More about this item


    Poverty; Education; Pakistan;

    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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