Education provides a channel for poverty escape via intergenerational mobility (Zuo et. al, 2023). Pakistan's stifled mobility and consistent political instability provides an opportunity to learn more about the impact of structural and policy changes on intergenerational mo- bility. This study examines the spillover effects of 1972 nationalization policy on children's educational outcomes in Pakistan with a particular focus on intergenerational spillovers mediated through fathers' education. A comprehensive microdataset is used from Pakistan Social and Living Standards Measurements (PSLM) 2019-20 survey. To analyze the impact of policy regional level Difference-in-Difference (DiD) approach was adopted. To quantify the causal impact further a complementary Instrumental Variable approach was also uti- lized. Findings suggests that 1972 nationalization policy improved educational access in restricted sample case, especially in rural areas with meagre 0.33 additional schooling on average. Whereas, IV approach reveal that Fathers' education showed strong intergener- ational spillovers, as an additional year of schooling increased a child's education by 1.03 years. However, DiD results suggested that overall educational attainment decline was ob- served post policy. Additionally, impact on child' earning outcomes also confirms that just the supply side reforms are not sufficient for interegenerational mobility unless high quality of schooling is also ensured.
Sania Zeb (Sun,) studied this question.
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