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Impact of education on poverty reduction

Author

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

Abstract

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

    as
    1. Zafar Mueen Nasir & Hina Nazli, 2000. "Education And Earnings In Pakistan," PIDE-Working Papers 2000:177, Pakistan Institute of Development Economics.
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    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. 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.
    5. 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.
    6. 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.
    7. 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.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Poverty; Education; Pakistan;
    All these keywords.

    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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