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The Role of Education and Income in Poverty Alleviation: A Cross-Country Analysis

Pervez Janjua () and Usman Ahmad Kamal ()

Lahore Journal of Economics, 2011, vol. 16, issue 1, 143-172

Abstract: The existing literature on education and poverty considers mostly primary data from an income point of view. However, the benefits of education vary from a direct income effect to positive externalities, which can help reduce poverty. This paper uses panel data for 40 developing countries for the period 1999 to 2007, and estimates coefficients by applying the random effect generalized least squares (GLS) technique. The study concludes, first, that income growth plays a moderately positive role in alleviating poverty, but that income distribution does not play a key role in poverty alleviation in the sample overall. Second, it concludes that education is the most significant contributor to poverty alleviation.

Keywords: Education; income; income distribution; poverty alleviation; GLS; Pakistan. (search for similar items in EconPapers)
JEL-codes: I30 I32 (search for similar items in EconPapers)
Date: 2011
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Handle: RePEc:lje:journl:v:16:y:2011:i:1:p:143-172