IDEAS home Printed from https://ideas.repec.org/a/lje/journl/v8y2003i2p85-98.html
   My bibliography  Save this article

Changes in Returns to Education in Pakistan: 1990-2002

Author

Listed:
  • Farhan Sami Khan

    (Research Officer, Social Policy and Development Centre (SPDC), Karachi, Pakistan.)

  • Imran Ashraf Toor

    (Research Officer, Social Policy and Development Centre (SPDC), Karachi, Pakistan.)

Abstract

This paper examines the trends in marginal rates of return to various levels of education for paid employees and how rewards for additional investments at a particularlevel of education has changed over time. Although the findings are indicative of increasing returns at different educational levels (excluding Graduation) over the years, we find no evidence that additional investments atsuccessive levels bring consistently higher returns as highlighted by certain previous studies in Pakistan. The changes in returns at the primary and pre secondary levels have been found to be miniscule, taking the time spaninto consideration. The paper has also examined the returns to education between males and females and across urban and rural areas in view of the large disparities that exist by gender and region. Our findings indicate that although the wage structure may be biased in favour of males, additional investments made in female education accrue higher returns in comparison to males. Moreover, higher education is better rewarded in the urban areas whereas medium of instruction is a significant indicator of earning differentials in the labour market.

Suggested Citation

  • Farhan Sami Khan & Imran Ashraf Toor, 2003. "Changes in Returns to Education in Pakistan: 1990-2002," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 8(2), pages 85-98, Jul-Dec.
    • Handle: RePEc:lje:journl:v:8:y:2003:i:2:p:85-98
    as

    Download full text from publisher

    File URL: http://121.52.153.179/JOURNAL/vol8-NoII/Farhan-Toor-final.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. P. Duraisamy, 2000. "Changes in Returns to Education in India, 1983-94: By Gender, Age-Cohort and Location," Working Papers 815, Economic Growth Center, Yale University.
    2. Duraisamy, P., 2000. "Changes in Returns to Education in India, 1983-94: By Gender, Age-Cohort and Location," Center Discussion Papers 28505, Yale University, Economic Growth Center.
    3. Zafar Mueen Nasir, 2002. "Returns to Human Capital in Pakistan: A Gender Disaggregated Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 41(1), pages 1-28.
    4. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4, National Bureau of Economic Research, Inc.
    5. Stanovnik, Tine, 1997. "The returns to education in Slovenia," Economics of Education Review, Elsevier, vol. 16(4), pages 443-449, October.
    6. Tayyeb Shabbir, 1994. "Mincerian Earnings Function for Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 33(1), pages 1-18.
    7. Duraisamy, P., 2002. "Changes in returns to education in India, 1983-94: by gender, age-cohort and location," Economics of Education Review, Elsevier, vol. 21(6), pages 609-622, December.
    8. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, March.
    9. Alba-Ramirez, Alfonso & San Segundo, Maria Jesus, 1995. "The returns to education in Spain," Economics of Education Review, Elsevier, vol. 14(2), pages 155-166, June.
    10. Zafar Mueen Nasir, 2001. "Poverty and Labour Market Linkages in Pakistan," MIMAP Technical Paper Series 2001:07, Pakistan Institute of Development Economics.
    11. Ryoo, Jai-Kyung & Nam, Young-Sook & Carnoy, Martin, 1993. "Changing rates of return to education over time: A Korean case study," Economics of Education Review, Elsevier, vol. 12(1), pages 71-80, March.
    12. Weisberg, Jacob, 1995. "Returns to education in Israel: 1974 and 1983," Economics of Education Review, Elsevier, vol. 14(2), pages 145-154, June.
    13. Annamaria Di Bartolo, 1999. "Modern Human Capital Analysis: Estimation of US, Canada and Italy Earning Functions," LIS Working papers 212, LIS Cross-National Data Center in Luxembourg.
    14. Duraisamy, P., 2000. "Changes in Returns to Education in India, 1983-94: By Gender, Age-Cohort and Location," Papers 815, Yale - Economic Growth Center.
    15. Birjees ASHRAF & Javed ASHRAF*, 1996. "EVIDENCE ON GENDER WAGE DISCRIMINATION FROM THE 1984-85 HIES: A Note," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 12(1), pages 85-94.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jamal, Haroon, 2015. "Private Returns to Education in Pakistan: A Statistical Investigation," MPRA Paper 70640, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Adebayo Aromolaran, 2006. "Estimates of Mincerian Returns to Schooling in Nigeria," Oxford Development Studies, Taylor & Francis Journals, vol. 34(2), pages 265-292.
    2. Tushar Agrawal, 2011. "Returns to education in India: Some recent evidence," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2011-017, Indira Gandhi Institute of Development Research, Mumbai, India.
    3. Fasih, Tazeen & Kingdon, Geeta & Patrinos, Harry Anthony & Sakellariou, Chris & Soderbom, Mans, 2012. "Heterogeneous returns to education in the labor market," Policy Research Working Paper Series 6170, The World Bank.
    4. Geeta Kingdon & Nicolas Theopold, 2006. "Do returns to education matter to schooling participation?," Economics Series Working Papers GPRG-WPS-052, University of Oxford, Department of Economics.
    5. Muhammad Nauman Malik & Masood Sarwar Awan, 2016. "Analysing Econometric Bias and Non-linearity in Returns to Education of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 55(4), pages 837-851.
    6. Chaudhary, Ruchika. & Verick, Sher., 2014. "Female labour force participation in India and beyond," ILO Working Papers 994867893402676, International Labour Organization.
    7. Duflo, Esther & Hanna, Rema, 2005. "Monitoring Works: Getting Teachers to Come to School," CEPR Discussion Papers 5426, C.E.P.R. Discussion Papers.
    8. Ishwar Awasthi & Balwant Singh Mehta, 2020. "Forced Out-Migration from Hill Regions and Return Migration During the Pandemic: Evidence from Uttarakhand," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(4), pages 1107-1124, December.
    9. Garcia-Mainar, Inmaculada & Montuenga-Gomez, Victor M., 2005. "Education returns of wage earners and self-employed workers: Portugal vs. Spain," Economics of Education Review, Elsevier, vol. 24(2), pages 161-170, April.
    10. Zafar Mueen Nasir & Hina Nazli, 2000. "Education and Earnings in Pakistan," PIDE Research Report 2000:1, Pakistan Institute of Development Economics.
    11. repec:ilo:ilowps:486789 is not listed on IDEAS
    12. Bosworth, Barry & Collins, Susan M. & Virmani, Arvind, 2007. "Sources of Growth in the Indian Economy," India Policy Forum, National Council of Applied Economic Research, vol. 3(1), pages 1-69.
    13. Mohd. Imran Khan & Pallavi Wats & Jannet Jacob Farida, 2023. "Gender Differences in Returns to Self-employment in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 66(1), pages 239-266, March.
    14. Hatidza Jahic & Amila Pilav-Velic, 2021. "Measuring returns on investment in education: lessons for sustainable and innovative education policy," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 19(2), pages 189-209.
    15. John C. Caldwell, 2005. "On Net Intergenerational Wealth Flows: An Update," Population and Development Review, The Population Council, Inc., vol. 31(4), pages 721-740, December.
    16. Leone Leonida & Leone Leonida & Daniel Montolio, 2003. "Public Capital, Growth and Convergence in Spain. A Counterfactual Density Estimation Approach," Working Papers 2003/3, Institut d'Economia de Barcelona (IEB).
    17. Oancea, Bogdan & Pospisil, Richard & Dragoescu, Raluca, 2017. "The return to higher education: evidence from Romania," MPRA Paper 81720, University Library of Munich, Germany.
    18. Pham, Thai-Hung & Reilly, Barry, 2007. "The gender pay gap in Vietnam, 1993-2002: A quantile regression approach," Journal of Asian Economics, Elsevier, vol. 18(5), pages 775-808, October.
    19. Desai, Mihir A. & Kapur, Devesh & McHale, John & Rogers, Keith, 2009. "The fiscal impact of high-skilled emigration: Flows of Indians to the U.S," Journal of Development Economics, Elsevier, vol. 88(1), pages 32-44, January.
    20. Florence Arestoff & Jérôme Sgard, 2012. "Education, pauvreté, inégalités : les relations économiques élémentaires," SciencePo Working papers Main hal-01054021, HAL.
    21. Angel de la Fuente & Antonio Ciccone, 2003. "Human capital in a global and knowledge-based economy," UFAE and IAE Working Papers 562.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lje:journl:v:8:y:2003:i:2:p:85-98. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Shahid Salahuddin (email available below). General contact details of provider: https://edirc.repec.org/data/lsecopk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.