Human Capital Development and Poverty in Nigeria

Filed in Economics Project Topic by on September 14, 2020

Human Capital Development and Poverty in Nigeria.

Abstract

This study investigated human capital development and poverty in  Nigeria. The analysis was base on panel data regression model using National Living Standard Survey 2008.
The results obtained indicate that the apriori expectation of  the variables  which are sex, age in years, mother education,
total expenditure on education, quintile, and school enrollment were positive to the dependent variable which is poverty proxy by total expenditure of the house hold while father education,
house hold size, educational  group were negative  in the first model. In the second model, the apriori expectations also indicates that consultation on health, transportation, hospitalization, medication,

total expenditure on health were positive while mother and farther education were negative to the dependent variable which is poverty proxy by total  expenditure  of the house hold.
The implication for this sign for model one is that A unit increase in poverty will reduce the sex, age in years, mother education, total expenditure on education, quinttr and school enrollment by the value of 0.064357, 0.0022892, 0.0044055, 2.42e-06, 0.5189335, 0.0328021 respectively.

While, in the implication in the second model is that A unit increase in poverty will reduce the consultation on health, transportation on health, health medication, total expenditure on health by the value of 2.01e-07, 5.35e-07, 9.98e-08, 2.53e-06, 2.75e-06 respectively.

Statistically; the t-statistics of the variables under consideration indicates that the variables under consideration were not all significant though the overall estimates of the regression were statistically adequate.

It was discovered and concluded that education and health have a significant impact on poverty reduction in Nigeria and its impacts is positive as indicated in the coefficient, f-probability, and t- probability of the regression result.

Introduction

Background of Study

According to (Awan et al. 2008), investment in education and health are essential for human capital development, economic growth and poverty reduction.

The inter-relationship between education and poverty can be understood in two ways. Firstly, investment in education increases the skills and productivity of poor households.

It enhances the wage level as well  as  the overall welfare of the population. Secondly, poverty may constitute a major constraint to educational attainment. This may be interpreted from three perspectives.

The very first one is from the resource-side where poverty may handicap the acquisition of learning and other pedagogic materials (see Awan et  al.  2008).

The second perspective is that poverty may generate social pressures which mutilate the mindset of poor students and lastly, (Bramley and Karley 2005) have shown that when poverty grabs an institution it deteriorates the teaching standards. It is documented in the literature that education and poverty are inversely related.

The higher the level of education of the population the lesser will be the number of poor individuals because education impacts knowledge and skills which is supportive in higher wages (Tilak, 1994).

However, there is still a debate relating to the educational levels whether primary education is enough for poverty reduction or all educational levels (primary, secondary, higher and tertiary) have to be considered.

Even the Millennium Development Goals (MDGs) of the United Nations and the Poverty Reduction Strategy Papers (PRSP) recommended by the World  Bank  focus upon primary education and the education of the girl child as a gateway out of poverty.

References

Abiodun, A.A. (2002) “Rebuilding the Foundations of Education in Nigeria”.Newsletter of the Social Science Academy of Nigeria, Vol.5, No.2, pp21-31.
Adamu, P. A. 2002. “The Impact of Human Capital on Economic Growth anAERC Research Paper 102, Nairobi
Afonja, B. and F. O. Ogwumike. 1995. ‘Poverty: Meaning, Measurement and Causes’. A paper delivered at the National Workshop on Integration of Poverty Alleviation Strategies into the Plans and Programmes of Nigeria, Sponsored by the World Bank and Organised by the National Centre for Economic Management and Administration (NCEMA), November 27- December 1, Ibadan.
Akerl of, G.A. and R.E. Kranton. “Identity and Schooling: Some Lessons for   the Economics of Education”. Journal of Economic Literature, vol. XL (December), pp.1167-1201.
Akram, N. and Pada, I. (2009) Education and Economic Growth: A Review of Literature. http://mpra.ub.uni-muenchen.de/16200/ 12 July 2009.
Amis, P. and C. Rakodi. 1994. “Urban Poverty: Issues for Research  and  Policy”. Journal of International Development, vol.6 (5): 627-34.

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