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Returns to Human Capital in Pakistan: A Gender Disaggregated Analysis

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Author Info
Zafar Mueen Nasir (Pakistan Institute of Development Economics, Islamabad.)
Abstract

The impact of human capital variables on the earnings of regular wage employees is explored in this paper. Besides education and experience, literacy index, technical training, and school quality are included in the earning functions estimated for individuals. The credentialist view that education does not improve productivity—that it rather provides positive signals about productivity—is also tested. The results are based on the Pakistan Integrated Household Survey 1995-96 data, which provides information on many aspects of the individual’s characteristics missing in other surveys. The results of the study provide ample evidence in favour of human capital as a productivity-enhancing device for both male and female workers. All human capital variables are found to be statistically significant, having positive magnitude. The diploma effect is not very important for Pakistani workers, as only a few diploma dummies are statistically significant.

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Publisher Info
Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

Volume (Year): 41 (2002)
Issue (Month): 1 ()
Pages: 1-28
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Handle: RePEc:pid:journl:v:41:y:2002:i:1:p:1-28

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Behrman, J.R. & Ross, D. & Sabot, R. & Tropp, M., 1995. "Improving the Quality versus Increasing the Quantity of Schooling," Center for Development Economics 140, Department of Economics, Williams College.
  2. David Neumark & Sanders D. Korenman, 1988. "Does marriage really make men more productive?," Finance and Economics Discussion Series 29, Board of Governors of the Federal Reserve System (U.S.).
  3. Arrow, Kenneth J., 1973. "Higher education as a filter," Journal of Public Economics, Elsevier, vol. 2(3), pages 193-216, July. [Downloadable!] (restricted)
  4. Behrman, J.R. & Ross, D. & Sabot, R. & Alderman, H., 1995. "The Returns to endogenous Human Capital in Pakistan's Rural Wage Labour Market," Center for Development Economics 141, Department of Economics, Williams College.
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  5. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9. [Downloadable!] (restricted)
  6. T. Paul Schultz & Germano Mwabu, 1998. "Wage Premia for Education and Location, By Gender and Race in South Africa," Working Papers 785, Economic Growth Center, Yale University.
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  7. Boissiere, M & Knight, J B & Sabot, R H, 1985. "Earnings, Schooling, Ability, and Cognitive Skills," American Economic Review, American Economic Association, vol. 75(5), pages 1016-30, December. [Downloadable!] (restricted)
  8. Summers, Anita A & Wolfe, Barbara L, 1977. "Do Schools Make a Difference?," American Economic Review, American Economic Association, vol. 67(4), pages 639-52, September. [Downloadable!] (restricted)
  9. Behrman, Jere R. & Khan, Shahrukh & Ross, David & Sabot, Richard, 1997. "School quality and cognitive achievement production: A case study for rural Pakistan," Economics of Education Review, Elsevier, vol. 16(2), pages 127-142, April. [Downloadable!] (restricted)
  10. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September. [Downloadable!] (restricted)
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  11. Yasuyuki Sawada, 1997. "Human Capital Investments in Pakistan: Implications of Micro Evidence from Rural Households," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 36(4), pages 695-712. [Downloadable!]
  12. Behrman, Jere R & Birdsall, Nancy, 1983. "The Quality of Schooling: Quantity Alone is Misleading," American Economic Review, American Economic Association, vol. 73(5), pages 928-46, December. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Zafar Mueen Nasir, 2005. "An Analysis of Occupational Choice in Pakistan: A Multinomial Approach," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 44(1), pages 57-79. [Downloadable!]
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