MP R AMunich Personal RePEc Archive Impact of education on poverty reduction Masood Sarwar Awan and Nouman Malik and Haroon Sarwar and Muhammad Waqas Department of Economics. University of Sargodha., Quiad-e-Azam University Islamabad, Pakistan. 2011 Online at http://mpra.ub.uni-muenchen.de/31826/ MPRA Paper No. 31826, posted 24. June 2011 19:33 UTC eapon a!ainst poverty preva*ence.or%ers/ as t#e "eterminants of poverty.#ic# s're*y means t#e fa** in #'man poverty. Nouman Malikb. &'ia"(e(A)am University Is*ama+a"$ Pa%istan.an" fina**y$ for poverty re"'ction/ !aine" m'c# importance in t#e mi" 4558s +eca'se t#e economic pro!ress of East Asian co'ntries . T#e #i!#er t#e *eve* of e"'cation of t#e pop'*ation$ *esser . 2ence it is important to see% o't t#e effect of "ifferent *eve*s of e"'cation 'pon poverty in Pa%istan. It is 'n"erstoo" t#at s'c# +asic nee"1s presence increase t#e pro"'ctivity an" .#ic# is s'pportive in #i!#er .2IE / for t#e years 4556(55 an" 7884(87. T#is st'"y eva*'ates t#e effect of "ifferent *eve*s of e"'cation$ e3perience an" !en"er of t#e emp*oye" in"ivi"'a*s . University of ar!o"#a$ Pa%istan.a!es conse>'ent*y p'ttin! peop*e 4 . Moreover$ +ein! a ma*e person provi"es an a"vanta!e in retainin! a position a+ove poverty *eve*. T#e e"'cation in"irect*y #e*ps in t#e f'*fi**ment of +asic nee"s *i%e .*e"!e an" s%i**s .it# t#e pro+a+i*ity of an in"ivi"'a* +ein! poor as t#e "epen"ent varia+*e an" a set of e"'cationa* *eve*s$ e3perience an" !en"er as e3p*anatory varia+*es. ABSTRACT Poverty is a st'm+*in! +*oc% in t#e .7<. T#e in"irect effect of e"'cation on poverty is important .a!es. Co!ni)ant of t#e essence of Mi**enni'm Deve*opment -oa*s .i** +e t#e n'm+er of poor persons +eca'se e"'cation imparts %no.e !o for t#e #i!#er *eve*s of e"'cation t#e c#ances of a person +ein! non(poor increases.ater an" sanitation$ 'ti*i)ation of #ea*t# faci*ities$ s#e*ter$ an" it a*so affects t#e .MD-s/ an" 0E"'cation for A**1 pro!ram$ e"'cation is prom'*!ate" as t#e primary .a!e earners an" 'npai" fami*y .it# respect to 0#'man poverty1 +eca'se as e"'cation improves t#e income$ t#e f'*fi**ment of +asic necessities +ecomes easier an" raises t#e *ivin! stan"ar" . Keywords: Poverty$ E"'cation$ Pa%istan ! "NTR#$%CT"#N T#e t#o'!#t t#at e"'cation an" #'man capita* are essentia* for economic !ro.as primari*y "'e to t#eir investment in e"'cation an" #'man capita* formation . in!apore$ 2on! 9on!$ T#e Rep'+*ic of 9orea an" Tai. It is fo'n" t#at e3perience an" e"'cationa* ac#ievement is ne!ative*y re*ate" .4<. E"'cation an" poverty are inverse*y re*ate". Haroon Sarwara. A *o!istic re!ression mo"e* is estimate" +ase" on t#is "ata$ .omen1s +e#avior in ferti*ity "ecisions an" fami*y p*annin! .IMPACT OF EDUCATION ON POVERTY REDUCTION Masood Sarwar Awana. T#e "irect effect of e"'cation on poverty re"'ction is t#ro'!# increasin! t#e earnin!s=income or .emp*oyers$ se*f(emp*oye"$ .ay of ac#ievin! economic "eve*opment.it# t#e poverty inci"ence in +ot# years.t# .a!es. A*so as .an/ in 45:8s an" 4568s . Muhammad Waqasa a b Department of Economics. T#e "ata for t#is tas% comes from t#e 2o'se#o*" Inte!rate" Economic 'rvey . Poverty affects t#e e"'cationa* ac#ievement in t#ree "imensions.a+ove t#e poverty *ine.o .#y primary e"'cation is foc'se" .e constr'ct a varia+*e Jpro+a+i*ity of +ein! poorK.#en poverty !ra+s any instit'tion it "eteriorates t#e teac#in! stan"ar"s .MD-s/ of t#e Unite" Nations an" t#e Poverty Re"'ction trate!y Papers . In or"er to fin" o't t#is impact t#e st'"y 'se" *o!istic re!ression .or% an" in carin! yo'n!er +rot#ers an" sisters.ays? First*y$ investment in e"'cation increases t#e s%i**s an" pro"'ctivity of poor #o'se#o*"s. T#e present st'"y 'ses t#e "ata of t#e 2IE for t#e years 4556(55 an" 7884(87 to fin" o't t#e 7 .#et#er primary e"'cation is eno'!# for t#e '*timate o'tcomes or a** e"'cationa* *eve*s .i** +e consi"ere" as non(poor an" .B<. *eve*s of e"'cation an" at micro *eve* c#i*"ren of poor fami*ies "o not atten" sc#oo*s. In Pa%istan$ A. Even t#e Mi**enni'm Deve*opment -oa*s . Moreover$ some 'se*ess socia* norms an" so(ca**e" re*i!io's "octrine ar"ent*y restrain !ir*1s e"'cation. It is note. T#e *in%a!es +et.ort#y t#at t#e 0e"'cation poverty1 . Moreover$ e"'cation #e*ps in t#e f'*fi**ment of +asic nee"s .i** +e assi!ne" it va*'e e>'a* to )ero.een e"'cation an" poverty #as +een reco!ni)e" +'t t#ere is a "e+ate re*atin! to t#e e"'cationa* *eve*sE .#ic# m'ti*ates t#e min"set of poor st'"ent an" *ast*y . T#is st'"y fin"s o't t#e effect of "ifferent *eve*s of e"'cation on poverty. It en#ances t#e income *eve* as . At macro *eve*$ .it# eac# ot#er +ot# at macro an" micro *eve*s. Gac% of e"'cation is a %ey factor of income poverty an" a+sence of s'fficient income=earnin!s can1t overcome t#e e"'cation poverty .6<.*ac% of e"'cation/ an" 0income poverty1 #ave a m't'a**y reinforcin! re*ations#ip . If a person is in t#e *o.enty to fifty times cost*y as compare" .*earnin! an" financia* reso'rces/$ secon" one is t#e !eneration of s'c# socia* press'res .A<.D<.est >'inti*e t#en #e=s#e is consi"ere" as poor an" #e=s#e co'*" +e assi!ne" va*'e e>'a* to one an" if person is in ot#er >'inti*es t#en #e=s#e . T#erefore$ !overnments in "eve*opin! economies .@<.it# t#e primary e"'cation e3pansion .een e"'cation an" poverty +roa"*y can +e seen in t. Pa%istan is secon" amon! t#e .e** as t#e overa** stan"ar" of *ivin! .e can !enera**y e3amine t#at poor co'ntries #ave *o. T#e inverse re*ations#ip +et. In "eve*opin! co'ntries t#e socia* ret'rns of primary e"'cation are m'c# #i!#er as compare" to t#at of tertiary e"'cation an" most of t#e time t#e re*ative*y ric# peop*e contin'e t#eir tertiary e"'cation$ e3pan"in! tertiary e"'cation is t.#ic# 68C never enro**e" in t#e sc#oo*s . 2ence t#e *ac% of e"'cation is a ca'se of *o.B mi**ion o't(of(sc#oo* c#i*"ren are present in .B<.#'man "eve*opment/. T#is is a "'mmy varia+*e #avin! va*'es )ero an" one.PR P/ recommen"e" +y t#e Hor*" Ian% foc'ses primari*y 'pon t#e primary e"'cation an" !ir*s1 e"'cation .era"icatin! poverty/ an" +asic nee"s t#emse*ves inc*'"e t#e e"'cation avai*a+i*ity$ #ence provision of e"'cation an" f'*fi**ment of +asic nee"s +ot# reinforce eac# ot#er . For e3amp*e$ ma*e c#i*"ren are consi"ere" as so'rce of income in t#e form of c#i*" *a+orE !ir*s are !enera**y s'pportive to mot#ers in #o'se#o*" .primary$ secon"ary an" #i!#er e"'cation/ #ave to +e foc'se" sim'*taneo's*y.it# #i!#est n'm+er of c#i*"ren o't of sc#oo*s an" it is +eca'se of severe poverty in Pa%istan . T#e very first one is from reso'rce(si"e . On t#e +asis of *o.#ere more t#an A8 percent of t#e pop'*ation *ives on F7 a "ay. earnin! potentia* of any person an" poverty persists in even ne3t !enerations of t#at #o'se#o*".est income >'inti*es .ant to re"'ce poverty in t#e c#eapest manner an" t#at1s .:<. T#e reasons +e#in" t#e a+sence of poor c#i*"ren in sc#oo*s are economic an" non(economic constraints. econ"*y$ poverty is a*so a +i! impe"iment in e"'cationa* attainment.it# t#e pro+a+i*ity of +ein! poor on "ifferent *eve*s of e"'cation an" e3perience.or*" co'ntries . T#e st'"y is or!ani)e" in t#e fo**o. Not on*y poverty is concentrate" in #o'se#o*"s .4 to 6. An increase in t#e e"'cationa* *eve* of t#e #ea" of t#e #o'se#o*" si!nificant*y re"'ces t#e c#ances of t#e #o'se#o*" +ein! poor . R&'"&W #( )"T&RAT%R& E"'cation an" #ea*t# en"o. In Pa%istan$ it #as +een fo'n" t#at mont#*y earnin!s of an in"ivi"'a* . A *ar!e portion of Pa%istan1s pop'*ation is ".ments of t#e in"ivi"'a*s are t#e necessary an" important components of #'man capita* .5<.#ic# ma%e t#em pro"'ctive an" raise t#eir stan"ar" of *ivin!.ar" tren" "'e to #i!#er *eve*s of e"'cation in *a+or mar%ets for non(a!ric'*t'ra* .B percent. 7.or%er increase" +y :. Ha!es to t#e farm(. Ha!es an" pro"'ctivity in non(farm activities rise .#ic# is one of t#e main pi**ars of #'man capita*. Earnin!s .#o #ire" for t#e 'ns%i**e"$ man'a* . T#e e"'cationa* attainment of #o'se#o*" #ea" is t#e critica* "eterminant of #o'se#o*" poverty in Pa%istan.effect of e"'cation 'pon poverty. 2'man capita* is re>'ire" for t#e effective 'ti*i)ation of p#ysica* an" nat'ra* capita*s$ an" tec#no*o!y an" s%i**s.ne" t#e poverty re"'ction strate!y paper$ .48<. Moreover$ an increase in t#e sc#oo*in! of #o'se#o*" #ea"s not on*y #as a positive impact on t#eir pro"'ctivity an" earnin!s +'t a*so en#ance t#e pro"'ctivity of ot#er mem+ers of t#e #o'se#o*" per#aps t#ro'!# pers'a"in! t#em to +e e"'cate" an"=or s%i**(oriente" . T#eir #o'sin!$ #ea*t#$ "rin%in! . On t#e ot#er si"e$ t#ose fema*e(#ea"e" poor #o'se#o*"s severe*y *ac% t#e +asic re>'irements of *ife.4D<.@ percent .4B<.e**in! in r'ra* areas #ence . Moreover$ eac# a""itiona* year of sc#oo*in! *eve* increase" earnin!s +y @ percent at primary *eve*$ +y B percent at secon"ary *eve*$ an" +y :. T#e provision of e"'cation can +rea% t#is circ*e t#ro'!# !ivin! a rise in earnin!s an" f'*fi**in! +asic nee"s . Eac# a""itiona* year of tec#nica* trainin! increase" earnin!s +y 7.een e"'cation an" earnin!s.7 percent at #i!#er=tertiary *eve*.i** +e increase" +y @: percent .it# e"'cation at an increasin! rate as e"'cation rises. Hit#o't #'man capita* form'*ation t#e !oa* of "eve*opment or poverty e*imination is inevita+*e an" #'man capita* acc'm'*ation is *ar!e*y +ase" 'pon e"'cation an" s%i**s attainment .47<.or%ers$ . T#e ot#er nota+*e t#in! re!ar"in! t#e e"'cation1s si!nificant ro*e in poverty re"'ction is t#e "irect *inear re*ations#ip +et.e m'st see t#e effect of e"'cation 'pon t#eir pro"'ctivity. ection @ is res'*ts an" "isc'ssion an" t#e *ast section conc*'"es t#e st'"y.or%. T#erefore$ it is >'ite evi"ent t#at e"'cation can increase t#e earnin! potentia* of t#e poor an" t#ey +ecome pro"'ctive .it# i**iterate=*ess e"'cate" #ea"s +'t a*so it is m'c# #armf'* for t#e fema*e(#ea"e" #o'se#o*"s as compare" to t#e ma*e( #ea"e" ones.ater$ sanitation faci*ities an" !ar+a!e co**ection system a** are in "ep*ora+*e con"ition. @ .it# t#e attainment of ten years of sc#oo*in! a!ainst no e"'cation.it# an a""itiona* year of sc#oo*in!.44<.in! manner? section 7 o't*ines t#e mo"e* for empirica* estimation an" "escri+es "ata. A** t#ese t#in!s affect t#e pro"'ctivity of poor persons an" t#ey can not come o't of t#eir vicio's poverty circ*es.or% on t#e farm$ are not responsive to e"'cation attainment .4@<. Fema*e se!ment of o'r society is comparative*y m'c# "eprive" as compare" to ma*e one. In r'ra* areas private ret'rns to ma*e e"'cation #ave an 'p. On t#e ot#er #an" t#e farm pro"'ctivity respon"s si!nificant*y on*y to t#e primary e"'cation . Iein! a "eve*opin! co'ntry Pa%istan #as o. as :BC in 7888 .or% 'pon t#e post(primary e"'cation +eca'se it #as t#e same ro*e as primary e"'cation.o'*" +e .e s#o'*" .e*fare of poor as compare" to t#e +asic e"'cation provision #ence income of poor raises one for one . Primary e"'cation is t#e initia* t#res#o*" of #'man capita* +'t secon"ary an" #i!#er e"'cation$ an" investment in science an" tec#no*o!y .ere avai*a+*e$ t#e avera!e comp*etion rate of primary e"'cation .it# *o. Eva*'ation of t#ose factors consi"erin! t#e o't#ern African co'ntries in 4558s an" in t#e +e!innin! of 7888$ s#o.e s#o'*" .!ro.ait for t#e 'niversa*i)in! of primary e"'cation rat#er .fa** of monetary ret'rns to e"'cation/$ *imite" access to pro"'ctive reso'rces *i%e *an" an" capita*$ risin! 2IV=AID $ a+sence of s'staine" !ro.#ic# a*so "eman" more an" more #'man capita*$ *o.it# t#e i"ea t#at !ro.e*fare point of vie.primary$ secon"ary an" tertiary/ are va*'a+*e in increasin! t#e per capita e3pen"it're of t#e #o'se#o*". T#e ro*e of "omestic an" overseas transfers a*so appeare" si!nificant a!ainst poverty an" its ro*e is m'c# more effective in 'r+an areas . A*so t#e a"'*t *iteracy rate of t#e so't#ern African states . +irt# rates per 4888 an" t#e preva*ence of 2IV #ave s#o. F'rt#er$ e"'cationa* *eve*s are si!nificant e*ements in re"'cin! t#e c#ances of t#e #o'se#o*" to +e poor . It #as +een seen t#at t#e *i%e*i#oo" of +ein! poor is #i!#er even for t#e *o. E"'cationa* *eve*s .#ereas t#e emer!in! economies at t#at time #a" :DC an" *east "eve*opin! co'ntries #a" B7C +'t s'c# statistics !ive no consi"era+*e improvement in poverty re"'ction.it# t#e poverty stat's of t#e #o'se#o*". Moreover$ in t#e simp*e re!ression secon"ary an" #i!#er e"'cation is inverse*y re*ate" .t# rates .t# is a prominent factor in e*iminatin! poverty an" primary e"'cation comp*etion is not so m'c# important.46<.t#/ +'t t#e primary e"'cation attainment #as a very *imite" impact 'pon t#e income of t#e poor t#erefore t#ey came 'p . T#e !*arin! facts 'nvei*e" t#e reasons *i%e #i!# 'nemp*oyment rates .as 4B.t# is more important for t#e .it# t#e poverty ratios on t#e ot#er #an" mi""*e an" secon"ary e"'cation are ne!ative*y re*ate". As e3pen"it'res inc*'"e t#e non(foo" items #ence a!ain e"'cation is re*evant from t#e overa** .er *eve* of e"'cation .#ic# affects t#e inverse re*ations#ip.er t#an five morta*ity rates$ infants . In In"ia t#e ana*ysis s'!!est t#at i**iteracy$ *iteracy an" primary e"'cation are positive*y re*ate" .DC in t#e years 455:(8@. T#e ot#er in"icators of #'man "eprivation inc*'"in!? t#e "rin%in! .ron! to say t#at for !ro.4A<.t# an" "eve*opment. In r'ra* areas asset "istri+'tion especia**y *an" an" *ivestoc% p*ay an important ro*e in "ifferin! poor an" non(poor. In t#e same "irection$ t#e fai*'re of 4558s e"'cationa* e3pansion to re"'ce poverty in Gatin American co'ntries "iv'*!es D .it# avera!e income .er >'a*ity stan"ar"s of e"'cation$ too m'c# "epen"ence 'pon t#e str'ct'ra* a"L'stment pro!rams of IMF t#at promotes re"'ction of !overnment investment 'pon socia* services an" infrastr'ct're$ pave" t#e .45<.t#$ "eve*opment an" poverty re"'ction . It .ater$ fe..ar"s "eprivation .4:<.i** !ive rise to acce*eration an" s'stenance in economic !ro. Poverty remaine" sta!nate" or increase" in some cases.e" t#at a*t#o'!# t#e e"'cationa* in"icators . T#e reasons are t#e o'tsi"e factors$ .as 6D.it# poverty$ t#erefore secon"ary an" #i!#er e"'cation is important in t#e inverse re*ation of e"'cation an" poverty apart from primary e"'cation .ay to.E3aminin! separate*y t#e r'ra* an" 'r+an sections of Pa%istan$ it #as +een o+serve" t#at in 'r+an areas t#e e"'cation of t#e #ea" of t#e #o'se#o*" is ne!ative*y an" "epen"ency ratio is positive*y re*ate" .AC an" t#e "rop o't rate for secon"ary e"'cation .#ose "ata . ometimes t#e overa** !ro.t#$ #i!# pop'*ation !ro.#ere e"'cation can1t approve t#eir inverse re*ation .it# poverty.ere apprecia+*e *i%e o't of 7D t#e 47 states$ .n minor pro!ress. He #ave a*so s'c# e3amp*es .B<. i** +e consi"ere" poor an" conse>'ent*y "epen"ent varia+*e .#at proportion as compare" to t#e reference cate!ory. I't if ine>'a*ity is risin! in t#e society "'e to t#e factor mentione" ear*ier t#en it .i** !et t#e va*'e one in response to t#e in"ivi"'a*1s #i!#est e"'cationa* attainment.t#e reasons .#ic# res'*ts in t#e +enefit to on*y t#ose persons .2IE / is con"'cte" +y t#e Fe"era* I'rea' of tatistics .it# .#ereas 0primary e"'cation1 .78<.est mont#*y incomes. T#e "ata 'se" for t#is st'"y is of 4556(55 an" 7884(87. T#e "epen"ent varia+*e is "ic#otomo's in . It is not t#e act'a* +'t t#e potentia* e3perience. T#e o"" ratios .i** #ave t#e in"ivi"'a*s .it# t#e *o.#ic# . In e3p*anatory varia+*es$ e"'cationa* varia+*es are "'mmy varia+*es an" one of t#em .or% o't fo'r >'inti*es of in"ivi"'a*s "epen"in! 'pon t#eir mont#*y incomes.it# t#e e"'cationa* e3pansion t#e !ro'p of persons .o o""s t#at are compare" to B .poor/ or )ero . He . In 4558s t#e former effect "ramatica**y "ominates t#at is . T#e res'*ts .ere not so m'c# poor.est .#ereas eac# in"ivi"'a* in ot#er t#ree >'inti*es .emp*oyers$ se*f( emp*oye"$ .e assi!n va*'e of one . He . For t#is tas%$ t#ere are "ifferent approac#es *i%e t#e +asic nee"s approac# or t#e ca*orie(+ase" approac#E +'t #ere .#ic# t#e va*'e 4 for t#e poor in"ivi"'a* an" 8 for t#e non(poor in"ivi"'a*.or"s$ .fo'rt#/ >'inti*e . T#e very first t#in! is to e*'ci"ate t#e criteria t#ro'!# .ma*eM4$ fema*eM8/ . T#ir"*y$ .a!e earners an" 'npai" fami*y .s? first*y$ t#e ine>'a*ity of e"'cationa* opport'nities$ . Ot#er varia+*es inc*'"e e3perience . 2o'se#o*" Income an" E3pen"it're 'rvey . T#e e3perience varia+*e is attaine" t#ro'!# s'+tractin! t#e years of sc#oo*in! an" sc#oo* startin! a!e from t#e a!e of a person. It is t#e avai*a+*e !i!antic an" meanin!f'* so'rce of information of its %in" t#at #as t#e #o'se#o*" *eve* information in Pa%istan.i** +e attri+'te" as reference cate!ory. T#e persona* c#aracteristics inc*'"e !en"er .non(poor/ to t#e "epen"ent "ic#otomo's varia+*e.i** +e t#e reference cate!ory. . T#e *o.i** 'se t#e o"" ratios in *o!istic re!ression to see t#at t#e occ'rrence of any partic'*ar event .FI / t#at !ives 's t#e "etai*e" information of #o'se#o*" *eve* in Pa%istan.i** ta%e va*'e one for t#em .i** o+vio's*y ta%e t#e va*'e )ero.masters an" a+ove/ cate!ory . T#e in"ivi"'a*s in t#e *o.i** see% o't t#e effect of "ifferent e"'cation *eve*s$ e3perience an" !en"er 'pon t#e pro+a+i*ity of +ein! poor of t#e emp*oye" in"ivi"'a*s. T#is st'"y ta%es t#e *o!istic re!ression tec#ni>'e to i"entify t#e impact of e"'cation 'pon poverty in Pa%istan.#ic# !ives rise to t#e fa** of #'man poverty. *! $ATA AN$ M&TH$#)#+.i** not +e interprete" t#ro'!# t#e coefficients +'t .i** increase or "ecrease t#e pro+a+i*ity of +ein! poor an" .#o .e can say t#at #o.or%ers/ into poor an" non(poor.e c*assify t#e emp*oye" in"ivi"'a*s . It means t#e e"'cationa* *eve* .i** .est >'inti*e .#ic# are as fo**o. E"'cation "efinite*y promotes socia* co#esion .i** eit#er fa** in mi""*e$ matric'*ation$ interme"iate$ +ac#e*ors or professiona* .ere "efine" as L'st t.#ere fema*e .e3p/ an" !en"er. In ot#er .i** !enerate socia* "ifferentiation an" "istorts t#e process of #'man poverty o+*iteration .#y poverty persists.e .e c*assify t#e in"ivi"'a*s t#ro'!# >'inti*es. econ"*y$ accor"in! to one estimate t#e eva*'ate" e"'cationa* t#res#o*" for Gatin American co'ntries is 47 years of sc#oo*in! +'t t#e !overnment on*y emp#asi)e 'pon t#e primary e"'cation.t#at ca'ses poverty/ an" t#e *ater one "oes not.it# #i!#er e"'cation an" #i!# earnin!s increases an" t#e e"'cationa* *eve* of t#e *ar!e *a+o'r force se!ment rises a*so +'t t#e former effect increases ine>'a*ity . -enera**y$ t#e res'*ts "epict t#at t#ere .e a*so see t#e ne!ative coefficient si!n an" . 2o.#et#er one !ro'p #as #i!#er or *o. H#i*e a n'm+er +et.n improvement as t#e proportiona* "ec*ine in pro+a+i*ity of +ein! poor !oes from 5BC to 5A.:C as compare" to t#e reference cate!ory of fema*e an" t#e fi!'re rises to 5D. T#e mi""*e$ matric'*ation .it# 4556(55 as t#e proportiona* fi!'re !oes from D. It means t#at #i!#er *eve*s of e"'cation re"'ce t#e pro+a+i*ity of +ein! poor A .e o+serve "ec*ine of D.AC +'t .een pro+a+i*ity of +ein! poor an" "ifferent *eve* of e"'cation. Comin! to.4C as compare" to t#e same reference cate!ory. On t#e !en"er si"e$ o'r res'*t is in favor of t#e . A!ain for t#e year 7884(87 in t#e same se>'ence t#e e"'cationa* *eve*s are re"'cin! t#e *i%e*i#oo" +ein! poor of in"ivi"'a*s +y BD.:C$ 65.4C .AC in 7884(87. A n'm+er$ !reater t#an one in"icates a positive association +et.DC respective*y as compare" to t#e reference cate!ory of 0primary e"'cation1 for t#e year 4556(55.#ic# are in *ine .it# t#e increase of one year in e3perience .er o"" ratios of +inary o'tcome. Moreover$ as t#e ac>'isition of e"'cation increases t#e proportiona* "ec*ine in t#e pro+a+i*ity of +ein! poor consistent*y increases.6C$ :6.+ac#/ an" professiona* .e e3p*ore t#e patterns .5C$ 5:C an" 55.Ma*e/$ .as a ne!ative re*ations#ip +et.BC$ :5. T#e year*y comparison of t#ese e"'cationa* >'a*ifications is vivi"*y "emonstratin! t#at for *o. T#e estimates of +ot# years separate*y prove" t#e fact t#at as t#e e"'cationa* attainment improves t#e proportiona* "ec*ine in t#e pro+a+i*ity of +ein! poor increases in fi!'re.een )ero an" one in"icates a ne!ative association.n.fema*e/$ more or *ess a** e"'cationa* *eve*s "o not ame*iorate. T#e overa** res'*ts of 4556(55 an" 7884(87 .inter/$ +ac#e*ors . T#e overa** res'*ts are "emonstrate" in Ta+*e 4 ."etermine .in! t#at t#e o"" ratios of a** varia+*es are *ess t#an )ero t#at p'ts a** t#e e"'cationa* *eve*s$ e3perience an" !en"er in ne!ative re*ation . In Ta+*e 7 .o years. In t#e separate !en"er estimates in Ta+*e 7 an" Ta+*e @$ .een an in"epen"ent varia+*e an" t#e "epen"ent varia+*e.:C to B.e see t#at +ac#e*ors *eve* s#o.AC an" 55.ever$ t#e e3perience of ma*e persons appears increasin!*y m'c# +eneficia* in 7884( 87 as compare" . It is >'ite evi"ent t#at effect is minor +'t t#e improvement is t#ere.7C$ 5A.e see t#at e3perience an" a** e"'cationa* *eve*s are ne!ative*y re*ate" .ar"s t#e e3perience(si"e$ #ere .e "o not o+serve s'c# increasin! tren" for t#e fema*es.matric/$ interme"iate .#ereas mi""*e$ interme"iate$ professiona* !ive "o.ar" tren" an" t#e effect of matric'*ation is same for t#e t. -! R&S%)TS AN$ $"SC%SS"#N A *o!istic re!ression mo"e* .BC$ 66.prof/ varia+*es are "ecreasin! t#e pro+a+i*ity of +ein! poor of emp*oye" persons +y B:.i"e*y preva*ent concept of !en"er +ias +eca'se +ein! a ma*e person re"'ces t#e c#ances of +ein! poor +y 5@. For +ot# ma*e an" fema*e re!ressions$ .#ereas t#e separate !en"er *eve* res'*ts are "escri+e" in Ta+*e 7 an" Ta+*e @.it# t#e poverty stat's of t#e emp*oye" persons.Ta+*e 4/ are s#o.it# t#e overa** interprete" res'*ts e3p*aine" a+ove.BC in t#e *i%e*i#oo" of +ein! poor of in"ivi"'a*s for t#e year 4556(55 an" BC for t#e year 7884(87.it# t#e poverty stat's of t#e emp*oye" persons.er *eve*s of e"'cation$ t#e ne!ative effect of e"'cation 'pon poverty remains intact +'t its intensity "ec*ines.as estimate" for 0pro+a+i*ity of +ein! poor1 on e3perience an" "ifferent *eve*s of e"'cation. In ta+*e @ . T#erefore$ e"'cation is t#e most important factor re!ar"in! poverty re"'ction.it# t#e poverty stat's an" #i!#er *eve*s of e"'cation . E3perience #as a*so a ne!ative re*ation . E"'cation is ne!ative*y *in%e" . It can +e ta%en as t#e improvement in e3pertise an" s%i** en#ancement$ .e** +ein! . T#e 0femini)ation of poverty1 means .i** "efinite*y #e*p 's in era"icatin! poverty. T#e res'*ts of t#e *o!istic re!ression are in accor"ance .it# t#e !enera**y accepte" t#eory t#at e"'cationa* attainment is a critica* "eterminant of t#e inci"ence of poverty an" s#o'*" +e consi"ere" primari*y in imp*ementin! poverty a**eviation pro!rammes. T#e res'*ts #ave s#o.s a person1s e3pertise in partic'*ar fie*" en#ances . T#e c'rrent st'"y conc*'"es t#at a ma*e person re"'ces t#e ris% of poverty as compare" to t#e fema*e an" t#e separate fema*e res'*ts "o not !ive 's an impressive sit'ation t#erefore t#ere is a nee" to ta%e an evasive action to provi"e a con!enia* emp*oyment environment for t#e fema*e a*on! .e increase t#e e"'cationa* *eve* it means t#at as e"'cationa* ac#ievement increases$ t#e *i%e*i#oo" of a person to +e poor "ec*ines.i** "efinite*y #e*p t#em to +e o't of poverty.#ic# #ave positive imp*ications in case of poverty e*imination.! C#NC)%S"#N T#is st'"y is "one to estimate t#e effect of e"'cation 'pon poverty in Pa%istan.!ra"'a**y.omen are m'c# more "eprive" an" facin! severe #ar"s#ips in p'**in! t#emse*ves o't of poverty as compare" to men "'e to t#eir 'ne>'a* e"'cationa* an" emp*oyment opport'nities.i** +e more an" more effective in poverty re"'ction.#ic# provi"es #im an opport'nity to earn #i!#er. 2ence e"'cation *eve* #as an important stan"in! in re"'cin! poverty in t#e co'ntry.it# e>'a* e"'cationa* opport'nities +eca'se t#ey are a*most #a*f se!ment of o'r society an" t#eir . : . T#e ot#er nota+*e t#in! is t#e consistent increase in t#e c#ances of escapin! poverty of a person as . T#e attainment of e"'cation en#ances t#e earnin! potentia* of in"ivi"'a*s an" conse>'ent*y$ t#e increase" earnin!s .2IE 4556(55 an" 2IE 7884(87/ con"'cte" +y t#e Fe"era* I'rea' of tatistics.it# t#e poverty stat's +eca'se o+vio's*y as t#e e3perience !ro.n t#at e"'cation attainment #as a ne!ative impact 'pon poverty. T#e "ata 'se" for t#is tas% is ta%en from t#e 2o'se#o*" Inte!rate" Economic 'rvey . . A. Researc# Report No. Ga+o'r an" Mana!ement in Deve*opment$ :$A4(::.4556/ JIasic E"'cation for Empo. 78@.$ Opo*ot$ N.455A/.788B/. Ne. Determinants of Poverty V'*nera+i*ity in U!an"a$ Disc'ssion Paper No. 7. Hor*" Ian% . De*#i? a!e P'+*ications. B. . &'res#i$ .N.PIDE/. an" Arif$ -.788A/. . .#. An Ana*ysis of Poverty at t#e Goca* Geve*. 7:$D@B(DDB.455@/ JT#e East Asian Mirac*e? Economic -ro. Pa%istan Instit'te of Deve*opment Economics$ Is*ama+a". 4D.$ E!o$ M. M'!#a*$H.. 2a>$ R.7884/.unesco. CR I Researc# Report$ . Instit'te for Internationa* Inte!ration t'"ies. an" Ias'$ M.. 4B. A. @.'%. .t# an" P'+*ic Po*icyK$ Po*icy Researc# Report$ O3for" University Press. 47. 7884(887$ Fo'n"ation for A"vance" t'"ies on Internationa* Deve*opment . an" 9#an$ 2. T#e Pa%istan Deve*opment Revie. .7888/. Post E*ementary E"'cation$ Poverty an" Deve*opment in In"ia.$ DD$D@5(DBD. of Deve*opment Economics$ 48$44A(4@D. Neffery$ R.788B/. B. UNE CO(PROAP .$ Rose$ P. an" 9ar*ey$ 9.2.788:/ JE"'cation For A** -*o+a* Monitorin! Report 788:K$ www. 9'rosa%i$ T. M.org.. Disc'ssion Paper No. Internationa* No'rna* of E"'cationa* Deve*opment. 2ome(O. E"'cation an" Earnin!s in Pa%istan. Revie. :.FA ID/.-.I. Iram*ey$-. an" O%e**o$ P.788:/. Nasir$ Q.A. Ac#ievin! c#oo*in! for a** in Africa? Costs$ Commitment an" -en"er. Ti*a%$ N.788B/. . D.R&(&R&NC&S 4. 2'man Capita*$ Pro"'ctivity$ an" tratification in R'ra* Pa%istan.crsis. 6 . .7884/.. Co*c*o'!#$ C. . 5.M. Co*c*o'!#$ C. Does E"'cation A+roa" 2e*p to A**eviate Poverty at 2omeP An Assessment.788B/. .ac. Pa%istan Instit'te of Deve*opment Economics . A*"ers#ot ? As#!ate Press. [email protected]@/. M. MIMAP Tec#nica* Paper eries No.A. . 44.. -ir*sO c#oo*in!$ HomenOs A'tonomy an" Ferti*ity C#an!e in o't# Asia. 48.erment of t#e PoorK Ian!%o%. Profi*e of Poverty in Pa%istan 4556(55. an" Na)*i$ 2. an" Tem+on.ners#ip$ Poverty an" E"'cationa* Ac#ievement? In"ivi"'a*$ c#oo* an" Nei!#+o'r#oo" Effects. DD$485@(4485. 2'man Capita* Investment an" Poverty Re"'ction trate!y in Pa%istan.788:/. UNE CO . . A+'%a$ C.9. A*( amarrai . . 9'rosa%i$ T. 4::. T#e Pa%istan Deve*opment Revie. Effects of E"'cation on Farm an" Non(Farm Pro"'ctivity in R'ra* Pa%istan. 6. 78. 46. . 5 . 45.e**$ N.A"'*t/ E"'cation$ an" Poverty Era"ication in o't#ern Africa. 4:. Nama*$ 2. an" -o".4A.455D/. Ro"ri!'e)$ A.E. an" mit#$ . On -*o+a* A+sences? Ref*ections on t#e Fai*in!s in t#e E"'cation an" Poverty Re*ations#ip in Gatin American Co'ntries. A Comparison of Determinants of Ur+an$ R'ra* an" Farm Poverty in Costa Rica. B7$@8B(@77. . Internationa* No'rna* of E"'cationa* Deve*opment$ 7:$6A(488. .HIDER/. In earc# of Poverty Pre"ictors? T#e Case of Ur+an an" R'ra* Pa%istan. Disc'ssion Paper No. Macroeconomics$ . -en"er an" E"'cation as Determinants of 2o'se#o*" Poverty in Ni!eria. Iona*$ R. of E"'cation.M. 7887=@:.-. T#e Pa%istan Deve*opment Revie.788:/. .788A/.788B/. Hor*" Instit'te for Deve*opment Economics Researc# . . enia$ N.7887/. O%oLie$ C.$ DD$@:(BB. Hor*" Deve*opment$ 77$@64(5:.E. Revie. 5BB 8.444 8.486 8.overa**/.6D6 (4.64B (4.7@7 (@.4D@ 8. Varia+*es e3p mi""*e matric inter +ac# prof ma*e Constant βS 4556(55 O""(Ratios 8.8D: (8. Varia+*es e3p mi""*e matric inter +ac# prof 4556(55 βS (8.6AA S A** coefficients appeare" si!nificant in t#e Ha*" test.:DA βS (8. Depen"ent varia+*e? pro+a+i*ity of +ein! poor Ta+*e 7? Go!istic Re!ression Mo"e* of +ein! poor .DD@ 8.Ma*e/.8B8 8.B5A (7.55: (D.8@D 8.44A (7.8@5 8.74B 8.8D5 (8.885 8.5:D (7.788 (@.D7B 8.4@5 8.DB7 8.D76 8.::4 @.5B8 8.5DD 8.A//&N$"0 Ta+*e 4? Go!istic Re!ression Mo"e* of +ein! poor .8B4 (8.@68 (B.it# m'*tip*e in"epen"ent varia+*es .57@ 7.B8B (D.76@ O""( Ratios 8.84D 7884(87 βS (8.88A 8.it# m'*tip*e in"epen"ent varia+*es .8BD 46.B@B (7.874 48 .8B6 (8.8A@ D:.776 8.5B@ 8.78@ 8.546 7884(87 O""(Ratios 8.77B (@.6BA (4.8@8 8.A55 (7.:5D (4.5DA (@.B85 (8.6:8 O""(Ratios 8.D:6 (4.D:6 (4.776 8. @85 D.8@A (@.44: @.@@: (@.DB5 (@.8@A 8.576 7.8@A 8.86A 8.Constant 4. Depen"ent varia+*e? pro+a+i*ity of +ein! poor Ta+*e @? Go!istic Re!ression Mo"e* of +ein! poor .5:8 8.4AA 7884(87 βS (8.647 (4.887 :8.877 8.844 8.646 (D.7B4 O""(Ratios 8.B8A (A.8@6 (4.4:4 8.@7@ (D.8@4 (8.4@7 4.Fema*e/.8BB 8.DDD 8.@BB 8.:A5 (7.4D4 SA** coefficients appeare" si!nificant in t#e Ha*" test.5A@ 8.it# m'*tip*e in"epen"ent varia+*es .88: 48. Depen"ent varia+*e? pro+a+i*ity of +ein! poor 44 .B86 SA** coefficients appeare" si!nificant in t#e Ha*" test. Varia+*es e3p mi""*e matric inter +ac# prof Constant 4556(55 βS (8.@B7 O""(Ratios 8.