Investment and Inequality in Pakistan's Education Sector

Khwaja Sarmad, Fazal Husain, G. M. Zahid


In this paper we present arguments for increasing expenditure
on the education sector. We show that there exist large inequalities in
the distribution of education services across regions and across genders
so that ensuring equal opportunity for all in education, either for
normative or economic reasons, will require large additional investments
in this sector. We also present evidence which shows that while the rate
of return to education in the country may not be high it has been
increasing over time, so that higher expenditure on the education sector
is also economically justifiable. Enrollments at all levels have been
increasing over time, along with household and institutional expenditure
on the education sector, which suggests a greater willingness to invest
in education. If the productivity of education is low then it would be
natural to expect a decline over time in the willingness of the people
and the government to bear t he costs of education. But first, we
examine the evidence about the increasing unemployment of educated
labour and show that this does not mean that there is an economic
surplus of education in the country, nor that the education sector is
overextended, but that it can be explained by 'search time'.

Full Text:




  • There are currently no refbacks.