IMPACT OF EDUCATION AND INCOME INEQUALITY ON POVERTY RATE OF PAKISTAN: AN ECONOMETRIC ANALYSIS
Keywords:Poverty, Income Inequality, Education, Labour Force
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.
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