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Human Capital and Poverty in Pakistan: Evidence from the Punjab Province

  • Ali, Sharafat
  • Ahmad, Najid

The role of human capital (education and health) is recognized both in theoretical and empirical economic literature. Better education and health services enhance productivity and earnings of the workers. So the present study is an attempt to assess the impact of human capital in poverty alleviation. A cross-sectional data of 34 districts of Punjab province was used for the analysis. Three equations have been estimated by using the ordinary least square method. Education and health services are found to have poverty lessening impact in the economy. The results are statistically robust as adjudged by the R-squared and F-value. The error terms of the estimated models fulfill the standard OLS assumptions. It is suggested that imparting of knowledge, training and skills in the people empowers them. Improved human resources increase the productivity and earnings of the workers. Furthermore, improved human capital can play its role in reducing multidimensional poverty and its severity. The study suggests a substantial increase in education and health expenditure by the government. Proper campaign to increase the enrollment can be fruitful. Every born child has its basic right to obtain basic education and health services. Provision of education and health services can help the poor to break the vicious cycle of poverty.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 48876.

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Date of creation: Aug 2013
Date of revision: Aug 2013
Handle: RePEc:pra:mprapa:48876
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  1. Musila, Jacob. & Belassi, Walid., 2004. "The impact of education expenditures on economic growth in Uganda: evidence from time series data," Journal of Developing Areas, Tennessee State University, College of Business, vol. 38(1), pages 123-133, September.
  2. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  3. Zafar Mueen Nasir & Hina Nazli, 2000. "Education And Earnings In Pakistan," PIDE-Working Papers 2000:177, Pakistan Institute of Development Economics.
  4. Paul M Romer, 1999. "Endogenous Technological Change," Levine's Working Paper Archive 2135, David K. Levine.
  5. Robert J. Barro, 2013. "Health and Economic Growth," CEMA Working Papers 572, China Economics and Management Academy, Central University of Finance and Economics.
  6. Robert J. Barro, 1998. "Determinants of Economic Growth: A Cross-Country Empirical Study," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262522543, June.
  7. Robert J. Barro, 2013. "Education and Economic Growth," Annals of Economics and Finance, Society for AEF, vol. 14(2), pages 301-328, November.
  8. Awan, Masood Sarwar & Malik, Nouman & Sarwar, Haroon & Waqas, Muhammad, 2011. "Impact of education on poverty reduction," MPRA Paper 31826, University Library of Munich, Germany.
  9. Sen, Amartya, 1997. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198292975.
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