Formal Education and Poverty in Ecuador in 2021: An Analysis Based on Scientific Evidence

Abstract

Formal education, understood as the process of acquiring knowledge and skills through educational institutions, is a powerful tool for improving living conditions and combating poverty. This research focuses on analyzing the effectiveness of education as a sustainable poverty reduction strategy through a theoretical review, statistical data analysis, and a logit econometric model using cross-sectional data. The results indicate that individuals with no formal education have a 3.73 times higher likelihood of being considered poor in terms of income, compared to a household head with higher education, making them more susceptible to experiencing this hardship. Similarly, maintaining the same reference point, household heads with literacy skills reflect a 2.48 times higher likelihood, those with a basic education level have a 3.7 times higher likelihood, and household heads with a middle/high school education level show a 2.31 times higher likelihood of being considered poor, being the least likely to experience income poverty when compared to the previously analyzed education levels, except when compared to someone with a higher education level.