A Nexus between Universal Primary Education and Poverty Reduction: A Case Study of Latin America

Abstract

This paper studies a correlation between universal primary education and poverty reduction by cross-sectional regression analyses with data of 99 countries in period 2001-2012. The results show that access to higher level of education than primary level contributes to better income distribution and poverty reduction. While primary education enrolment rate does not show significance in correlation with Gini index or poverty gap, quality of primary education affects poverty index. Quality primary education is a prerequisite to mitigate income inequality and severeness of poverty. Latin America case also supports the result. Among countries in this region, representatively, Chile with higher enrolment in secondary school and better quality in primary education exhibits low incidence of poverty. Quality of primary education is a crucial factor affecting poverty. In order to improve students achievement, therefore to accumulate human capital which is a key to solve poverty problem, efforts to improve the quality of education should be made. This paper is structured as follows. Chapter 1 describes the reasoning behind that international attention has paid to universal access to primary education. Chapter 2 presents literature review on the relationship between education (especially primary education) and poverty. Then, Chapter 3 introduces methodology and data this paper adopted to answer the research questions. Chapter 4 examines the results of 4 cross-sectional analyses, on the correlation at large between primary education and first, Gini coefficient, second, poverty gap. Chapter 5 includes case study on Latin American primary education and its impact on poverty, then the paper finally concludes with future policy implications.