Schooling is Associated Not Only with Long-Run Wages, But Also with Wage Risks and Disability Risks: The Pakistani Experience
AbstractMany studies document significantly positive associations between schooling attainment and wages in developing countries. But when individuals enter occupations subsequent to completing their schooling, they not only face an expected work-life path of wages, but a number of other occupational characteristics, including wage risks and disability risks, for which there may be compensating wage differentials. This study examines the relations between schooling on one hand and mean wages and these two types of risks on the other hand, based on 77,685 individuals from the wage-earning population as recorded in six Labor Force Surveys of Pakistan. The results suggest that schooling is positively associated with mean total wages and wage rates, but has different associations with these two types of risks: Disability risks decline as schooling increases but wage risks, and even more, wage rate risks increase as schooling increases. The schooling-wage risks relation, but not the schooling-disability risks relation,is consistent with there being compensating differentials.
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Bibliographic InfoPaper provided by Penn Institute for Economic Research, Department of Economics, University of Pennsylvania in its series PIER Working Paper Archive with number 11-013.
Length: 23 pages
Date of creation: 09 May 2011
Date of revision:
Wages; Risks; Labor Markets; Job Disabilities; Compensating Differentials; Developing Country; Schooling;
Other versions of this item:
- Asma Hyder & Jere R. Behrman, 2011. "Schooling is Associated not only with Longrun Wages, but also with Wage Risks and Disability Risks: The Pakistani Experience," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 50(4), pages 555-573.
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-06-04 (All new papers)
- NEP-DEV-2011-06-04 (Development)
- NEP-LAB-2011-06-04 (Labour Economics)
- NEP-LTV-2011-06-04 (Unemployment, Inequality & Poverty)
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