Social, Economic And Political Cost Of Educational Deprivation: A Districts Level Analysis Of Pakistan
Author: Nayar Rafique

This study has computed the cost to the economy associated with Pakistan’s educationally deprived, less productive labor force. Cost computation has been undertaken using the current actual educational profile of the labor force in the age bracket of ten years or more. The Labor Force Survey 2018 was used to gather the data required. The income of the total labor force was computed using two educational scenarios: (i) current educational profiles of the labor force and (ii) hypothetical better educational profiles (six better educational profiles have been considered). To begin with, we estimated returns to education for different levels of education. The wage rates for varying levels of education were determined by using these returns. Using the wage rates determined and available working hours, the study then computed the average annual income for each level of education. Using the average income thus computed, the income of the employed labor force with different educational profiles were computed. The sample of 30858 waged-employees in the age bracket ten years or more from HIES- PSLM 2018-19 was used for the aggregate analysis at the country level. District Rahim Yar Khan has been examined as a particular case to compute the cost of educational deprivation. Primary data of 404 waged employees in the age bracket 25-29 was used to account for individual quality, as a proxy of abilities, in computing the returns to education. The rest of the process followed for calculating the deprivation cost is the same as explained above for the aggregate analysis. The difference between the income level for the better educational profile and the current educational profile is the opportunity cost of educational deprivation. The key findings of this research have highlighted the importance of education by showing that Pakistan is facing massive opportunity costs by relying on the educationally deprived labor force. The results suggest that there could be a substantial increase in the GDP of Pakistan if the educational profile is improved. Additional growth of 3.32% in the GDP can be stimulated if those in the labor force with less than five years of education (primary level) are imparted education at least up to the primary level. The educational profile of SDG goal 4.1, requiring secondary education for all, if achieved, can stimulate sustainable GDP growth of more than 11%. Substantially higher GDP growth rates associated with even better educational profiles are indicated and explained in the main document. Supervisor:- Dr. Muhammad Idrees Khawaja

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Keywords : Capabilities, Earning Function, EDUCATION, Educational Deprivation, Growth And Development, Individual Quality, Productivity, Returns to Education, Sustainable Development Goals, Wage Rates
Supervisor: Muhammad Idrees Khawaja

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