An Empirical Investigation of the Effects of Health and Education on Income Distribution and Poverty in SAARC Countries

The purpose of this paper is to inquire into the effects of health and education on income distribution and poverty in selected SAARC countries. A model of income inequality along with a model of poverty, with some explanatory variables, are specified. In these models, the main variables are income level, health status, level of education, and level of savings. The models are estimated using a panel data set for 5 SAARC countries covering five time periods. The results show that boosting the health and education status in SAARC countries will reduce income inequality and poverty. The results of the empirical examination will help governments in SAARC countries to identify areas that need to be improved upon in order to reduce income inequality and alleviate poverty. The paper is the first of its kind, which provides empirical evidence that the health and education status is negatively associated with income inequality and poverty in SAARC countries