By using Pakistan panel household survey (PPHS) 2010 data, we examine (1) The magnitude of education mobility and (2) The influence of education accumulation on poverty dynamics. Educational mobility has been calculated by regressing children education on their parental education while welfare mobility has been measured through Household consumption level. By observing the interrelated nature between education accumulation and welfare Mobility we control for the high endogeneity between education accumulation and welfare dynamics over time. Therefore, we are using two stages Probit least square model (2SPLS). Firstly, we estimate simple education and welfare model, and found mobility for education but not for welfare. Then, we moved to 2SPLS which showed very low welfare mobility and very high educational mobility. An additional year of education acquired by a child has not associated with welfare improvement of household because the quality of education is low which cannot improve household welfare. However, households characterized by primary educated members have higher probability for their children to improve their welfare compared to their parents. These results suggests scale effect of education on welfare and recommend to more focus on quality education especially in the era globalization Supervisor:- Dr. Karim Khan