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Education and Earnings in Lao PDR: Further Results

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  • Phanhpakit ONPHANHDALA
  • Terukazu SURUGA

Abstract

This paper is a study on the returns to education in Lao PDR, a country which has been largely neglected by the literature. Conducting an empirical research using LECS 3, we found the significant private-public sector wage differentials. The wage premium is particularly pronounced for workers with a tertiary level education. The private rates of returns to education rose significantly with the economic transition. Particularly, returns for young workers are considerably higher than for older workers. Moreover, average private rate of return to primary education is the highest at 34% among educational attainments. The research findings have important implications for public sector salaries and the financing of education in Lao PDR.

Suggested Citation

  • Phanhpakit ONPHANHDALA & Terukazu SURUGA, 2007. "Education and Earnings in Lao PDR: Further Results," GSICS Working Paper Series 16, Graduate School of International Cooperation Studies, Kobe University.
    • Handle: RePEc:kcs:wpaper:16
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    File URL: http://www.research.kobe-u.ac.jp/gsics-publication/gwps/2007-16.pdf
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    References listed on IDEAS

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    1. World Food Programme, 2013. "State of School Feeding Worldwide 2013," World Bank Publications - Books, The World Bank Group, number 13536, December.

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    More about this item

    Keywords

    Returns to education; Wage differentials; Gender; Transition; Lao PDR;
    All these keywords.

    JEL classification:

    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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