EFFECTS OF POVERTY ON SCHOOL DROPOUT: A CASE STUDY OF PESHAWAR
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Date
2026
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Abstract
This study analyzes the relationship between poverty and school dropout in Peshawar, Khyber Pakhtunkhwa. In Pakistan, 22.8 million children are out of school, and this ratio reach to 35% in the case of KPK. Therefore, the objective of this study is to find out the effects of poverty and poverty-related factors such as child labor, cost of education, parental income, and parental education on school dropout, and which poverty-related factor contributes more to the school dropout. The theoretical framework consists of human capital theory, social capital theory, the capability approach, and the ecological model. This study uses a cross-sectional design and a quantitative research approach. This study was conducted in Peshawar, and primary data were collected from 401 parents and teachers through a structured questionnaire in May 2026. The sample size is derived by using the TARO YAMANE formula and taking 5% margin of error. Each variable is measured on a five-point Likert scale in order to convert perception, attitude, and opinion into numerical form. The data is analyzed by using the SATA software. At first, there are descriptive statistics and reliability analysis. The value of Cronbach’s alpha for every construct is greater than 0.80, which confirms the internal consistency of the data. Then, after identifying the problem of heteroscedasticity by using the Breusch-Pagan test, Robust regression was used to make the results reliable. The results show that the effect of poverty on school dropout is positive and statistically significant at 1% level, with a coefficient of 0.5317, which shows that if there is a one-unit increase in the poverty index, the dropout index will increase by 0.53 units. Apart from it, it is observed that the effect of child labor, cost of education, parental income, and parental education is positive but statistically insignificant. This shows that poverty is like an umbrella variable that captures the effect of all other factors. The R² of the model shows that the selected variables of the model explain 42. 35 % variation in school dropout, while the probability shows that the overall model is statistically significant. On the basis of these results, this study recommends that the government should expand targeted poverty alleviation programs like conditional cash transfer and should also provide free education and subsidies, the government should also strictly implement the child labor laws, and should also expand the community-based awareness campaigns. In conclusion, it is said that in Peshawar, the main and fundamental cause of school dropout is poverty. Only by increasing awareness and improving school infrastructure is it possible to reduce the dropout rate until poverty is targeted directly. If the government targets poverty directly, then it will lead to a significant decrease in the rate of school dropout. In this way, we can reach Sustainable Development Goal 4 and achieve the Quality Education for All goal.