IMPACT OF EDUCATION AND INCOME INEQUALITY ON POVERTY RATE OF PAKISTAN: AN ECONOMETRIC ANALYSIS
Keywords:
Poverty, Income Inequality, Education, Labour ForceAbstract
Education and income inequality are essential elements determining each country's socioeconomic environment. In Pakistan, like many developing nations, these variables are critical in determining individuals' well-being and possibilities. This research study tries to identify the role of Education and income Inequality on Poverty in Pakistan. The study data was collected from the WDI and economic survey of Pakistan. The Headcount ratio (HDR) is used to quantify poverty as the explained variables, while Education, life expectancy, labour force participation rate, and income inequality serve as the exploratory variables. The empirical results are estimated by using ARDL from 1990 to 2019. This study indicates that education and labour force participation declined poverty while income inequality increases poverty in Pakistan. Education generates different job opportunities, ultimately mitigating Pakistan's poverty level. This study suggests the government should increase the share of education investment, which significantly reduces poverty in Pakistan.
References
Abid, M. Y., Ghafoor, A., Javed, M. T., & Amjad, M. A. (2022). Impact of Non-linear Analysis of Crude Oil Prices on Domestic Inflation in Pakistan. Journal of Social Sciences Review, 2(4). DOI: https://doi.org/10.54183/jssr.v2i4.83
Afzal, M., Malik, M. E., Begum, I., Sarwar, K., & Fatima, H. (2012). Relationship among Education, poverty and economic growth in Pakistan: an econometric analysis. Journal of Elementary Education, 22(1), 23-45.
Amjad, M. A. (2023). Moderating the role of social progress with greenhouse gases to determine the health vulnerability in developing countries. Environmental Science and Pollution Research, 1-12. https://doi.org/10.1007/s11356-023-28867-1
Amjad, M. A., & Asghar, N. (2021a). Historical aspect of inflation in pre and post Covid-19 pandemic in Pakistan. Perennial Journal of History, 2(2), 383-401. DOI: https://doi.org/10.52700/pjh.v2i2.80
Amjad, M. A., & ur Rehman, H. (2023a). The Long Run Dynamics of Sustainable Economic Development on Ecological Footprint in Developed and Developing Countries: Panel Quantile Regression. Review of Education, Administration & Law, 6(2), 191-210. DOI:https://doi.org/10.47067/real.v6i2.322
Amjad, M. A., Asghar, N., & Rehman, H. U. (2021b). Can financial development help in raising sustainable economic growth and reduce environmental pollution in Pakistan? Evidence from non linear ARDL model. Review of Economics and Development Studies, 7(4), 475-491. https://doi.org/10.47067/reads.v7i4.406.
Amjad, M. A., Asghar, N., & ur Rehman, H. (2021c). Investigating the Role of Energy Prices in Enhancing Inflation in Pakistan: Fresh Insight from Asymmetric ARDL Model. Review of Applied Management and Social Sciences, 4(4), 811-822. https://doi.org/10.47067/ramss.v4i4.185
Amjad, M. A., Rafiq, F., Mahmood, Z., & Marsad, A. (2022). Exploring Youth Entrepreneurial Skills and Intention to Sustainable Start-up. Pakistan Journal of Humanities and Social Sciences, 10(4), 1291-1300. DOI: 10.52131/pjhss.2022.1004.0288
Amjad, M. A., ur Rehman, H., & Asghar, N. (2023a). The Long-Run Dynamics of Green Technology, Ecological Footprint, and Health Vulnerability in Developed and Developing Countries. iRASD Journal of Economics, 5(2), 364-376. DOI: https://doi.org/10.52131/joe.2023.0502.0133
Amjad, M. A., ur Rehman, H., & Batool, I. (2022). Nexus between Tourism and Economic Growth in Pakistan: Using Gregory Hansen and ARDL with Structural Break. Review of Education, Administration & Law, 5(3), 387-397. https://doi.org/10.47067/real.v5i3.247
Aref, A. (2011). Perceived impact of Education on poverty reduction in rural areas of Iran. Life Science Journal, 8(2), 498-501.
Asghar, N., & Amjad, M. A. (2022a). Asymmetric impact of energy prices on tourism demand in Pakistan. Journal of Economics, 3(1), 1-15. http://doi.org/10.52587/JEMS030101
Asghar, N., & Amjad, M. A. (2022b). Historical Perspective of External Debt in Pakistan: Identifying Key Determinants/Strategies. Review of Economics and Development Studies, 8(1), 13-24. https://doi.org/10.47067/reads.v8i1.427
Asghar, N., Amjad, M. A., & Rehman, H. U. (2023c). Analyzing the impact of access to electricity and biomass energy consumption on infant mortality rate: a global perspective. Environmental Science and Pollution Research. https://doi.org/10.1007/s11356-022-24144-9
Asghar, N., Amjad, M. A., & ur Rehman, H. (2022d). Historical Perspective of Poverty in Pakistan: Identifying Key Determinants/Strategies. PERENNIAL JOURNAL OF HISTORY, 3(1), 99-114. https://doi.org/10.52700/pjh.v3i1.103
Asghar, N., Amjad, M. A., Rehman, H. U., Munir, M., & Alhajj, R. (2023). Causes of Higher Ecological Footprint in Pakistan: Does Energy Consumption Contribute? Evidence from the Non-Linear ARDL Model. Sustainability, 15(4), 3013. https://doi.org/10.3390/su15043013.
Asghar, N., Amjad, M. A., Rehman, H. U., Munir, M., & Alhajj, R. (2022). Achieving sustainable development resilience: Poverty reduction through affordable access to electricity in developing economies. Journal of Cleaner Production, 376. https://doi.org/10.1016/j.jclepro.2022.134040
Awan, M. S., Malik, N., Sarwar, H., & Waqas, M. (2011). Impact of Education on poverty reduction.
Chaudhry, I. S. (2009). Poverty alleviation in Southern Punjab (Pakistan): An empirical evidence from the project area of Asian Development Bank. International Research Journal of Finance and Economics, 23(23), 23-32.
Cheema, A. R., & Sial, M. H. (2012). Poverty, income inequality, and growth in Pakistan: A pooled regression analysis.
Farooq, M. (2010). Education and income inequality in Pakistan. The Dialogue, 5(3), 228-240.
Janjua, P. Z., & Kamal, U. A. (2011). The role of Education and income in poverty alleviation: A cross-country analysis. The Lahore Journal of Economics, 16(1), 143.
Javed, M., Abbas, Q., & Husssain, S. (2021). Low Literacy Rate at Primary Level: Identification of Causes and Impacts. 5(2), 492–506.
Kemal, A. R. (2006). Income Inequalities in Pakistan and a Strategy to Reduce Income Inequalities. Background Paper for PRSP-II, PRSP Secretariat, Government of Pakistan.
Khan, M. Z. U., Rehman, S., & Rehman, C. A. (2015). Education and Income Inequality in Pakistan. Management and Administrative Sciences Review, 4(1), 134-145.
Kiani, A. (2011). Role of university education in poverty alleviation in Pakistan. Interdisciplinary Journal of Research and Business 1 (7) 30, 38.
Lacour, M., & Tissington, L. D. (2011). The effects of poverty on academic achievement. Educational Research and Reviews, 6(7), 522-527.
Liu, W., Li, J., & Zhao, R. (2021). The effects of rural Education on poverty in China: a spatial econometric perspective. Https://Doi.Org/10.1080/13547860.2021.1877240, 28(1), 176–198. https://doi.org/10.1080/13547860.2021.1877240
Mtey, K., & Sulle, A. (2013). The role of Education in poverty reduction in Tanzania. Global Advanced Research Journal of Educational Research and Review, 2(1), 006-014.
Ngepah, N., Makgalemele, T., & Saba, C. S. (2023). The relationship between Education and vulnerability to poverty in South Africa. Economic Change and Restructuring, 56(1), 633–656. https://doi.org/10.1007/S10644-022-09439-8/TABLES/5
Niazi, M. I., & Khan, A. (2012). The impact of Education on multidimensional poverty across the regions in Punjab. Journal of Elementary Education, 21(1), 77-89.
Njong, A. M. (2010). The effects of educational attainment on poverty reduction in Cameroon. International Journal of Educational Administration and Policy Studies, 2(1), 001-008.
Olupona, T. (2018). The Impact of Education on Income Inequality. Microeconomics: Welfare Economics & Collective Decision-Making eJournal. https://doi.org/10.2139/ssrn.3485523
Rafique, F., Hussain, S. W., Naushahi, M. M., Shah, S. K. H., & Amjad, M. A. (2023). Analyzing the Pump Diesel and Gasoline Prices on Inflation in Pakistan: A New Evidence from Non-Linear ARDL. Journal of Social Sciences Review, 3(2), 372-381. DOI: https://doi.org/10.54183/jssr.v3i2.270
Rani, T., Amjad, M. A., Asghar, N., & Rehman, H. U. (2022a). Revisiting the environmental impact of financial development on economic growth and carbon emissions: evidence from South Asian economies. Clean Technologies and Environmental Policy, 24(9), 2957-2965. https://doi.org/10.1007/s10098-022-02360-8
Rani, T., Amjad, M. A., Asghar, N., & Rehman, H. U. (2022b). Exploring the moderating effect of globalization, financial development and environmental degradation nexus: a roadmap to sustainable development. Environment, Development and Sustainability, 1-19. https://doi.org/10.1007/s10668-022-02676-x.
Shahabadi, A., Nemati, M., & Hosseinidoust, S.E. (2018). The Effect of Education on Income Inequality in Selected Islamic Countries. International Journal of Asia Pacific Studies. https://doi.org/10.21315/IJAPS2018.14.2.3
Sial, M. H., Arshed, N., Amjad, M. A., & Khan, Y. A. (2022). Nexus between fossil fuel consumption and infant mortality rate: a non-linear analysis. Environmental Science and Pollution Research, 29(38), 58378-58387. https://doi.org/10.1007/s11356-022-19975-5
Wang, H., Asif Amjad, M., Arshed, N., Mohamed, A., Ali, S., Haider Jafri, M. A., & Khan, Y. A. (2022). Fossil energy demand and economic development in BRICS countries. Frontiers in Energy Research, 10, 842793. https://doi.org/10.3389/fenrg.2022.842793.
Woolard, I. (2001). Income inequality and poverty: methods of estimation and some policy applications for South Africa. publisher not identified.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 PAKISTAN ISLAMICUS (An International Journal of Islamic & Social Sciences)
This work is licensed under a Creative Commons Attribution 4.0 International License.
This work is licensed under a Creative Commons Attribution 4.0 International License.
