Impact of Technical and Vocational Education and Training on Poverty Alleviation through Skill Acquisition: Evidence from Developing Countries

Authors

  • Muhammad Yousaf PhD Scholar, School of Economics, IIIE, International Islamic University, Islamabad.
  • Arshad Ali Bhatti Assistant Professor, School of Economics, IIIE, International Islamic University Islamabad.

Keywords:

Technical and Vocational Education and Training, Adult Skill, Poverty, Panel Data

Abstract

Purpose: This study aims to investigate the impact of technical and vocational education and training on alleviating poverty in developing countries while exploring the role of adult skills as a mediator and moderator.

Study Design/Methodology/Approach: It uses the unbalanced panel data of selected developing countries from 1970 to 2019 and employs the seemingly unrelated regression method for unbalanced panel data, as suggested by Biorn (2004) for the mediation analysis. While moderation analysis uses the fixed effects model.

Findings: The study affirms a significant negative nonlinear relationship between technical and vocational education and training and poverty. The indirect effect (mediation analysis) confirms the existence of partial mediation of adult skills; that is, adult skill acquisition is helpful for poverty alleviation. The moderation analysis supports the above result concluding that technical and vocational education reduces poverty at all levels of adult skills, however, it remains significant at low levels.

Originality/Value/Implications: This study contributes to the literature by examining the role of adult skills in the effect of technical and vocational education and training on poverty alleviation. Its findings can help policymakers consider technical training programs for youngsters and adult skill acquisition in the process of designing policies for reducing poverty.

Downloads

Published

2022-06-30

Issue

Section

Articles