Effect of Education on Poverty and Wellbeing of Rural Households in District Hangu, Khyber Pakhtunkhwa

Abstract

Education plays a significant role in alleviating poverty and increase well-being of the people. This study was aimed to highlight the role of education on decreasing poverty and increasing the well-beings of rural households in district Hangu. A Sample of 375 households was selected. In this study multinomial logit model was used to know the effect of each educational variable on different form of poverty and independent sample t-test was employed to determine differences in well-beings between less educated and more educated households. Results of the study reveal that each educational variable has a negative relationship with poverty. Statistical analysis of the data shows that as the level of education increase the marginal effect to overcome extreme poverty and moderate poverty also increases. Moreover, the study found that each educational variable has a positive association with the probability of not being poor. Besides, the results have statistically significant difference in overall well-being between less educated and more educated households. More educated households are more social, less emotional, and more mentally strong than less educated households. For policy, the study suggests higher education to eradicate poverty and enhance well-beings.

       Keyword: education, poverty and well-beings