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Education And Earnings In Pakistan

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Author Info

  • Zafar Mueen Nasir

    (Pakistan Institute of Development Economics (PIDE) Islamabad.)

  • Hina Nazli

    (Pakistan Institute of Development Economics (PIDE) Islamabad.)

Abstract

This paper examines the role of education, technical training, school quality and literacy and numeracy skills on the earnings of wage earners and salaried persons in Pakistan by using the recent data of PIHS (1995-96). The analysis confirms the positive role of education as each year of education brings approximately 7 percent returns for wage earners. In addition, the effect of literacy and numeracy skills is observed to be large and significant. The returns are 15 percent higher for those who have all three skills as compared to those who do not possess any of these skills. The impact of technical training and private schools is found to be positive and significant. This paper draws three main policy implications. First, a large and significant impact of literacy and numeracy skills highlights the importance of basic learning skills that leads to higher wages in the labour market. This suggests the need of enhancing literacy and numeracy skills through formal as well as informal education. Second, a positive and significant association between earnings and higher level of technical training implies the urgent need of such institutions that can train individuals on modern lines in order to cope with the rapidly changing technology. And third, a large and significant coefficient of private schools highlights the importance of quality of education. The results suggests that more emphasis should be placed on market oriented approach in education. This requires the overhauling of public school system not only in terms of curriculum but also in teaching methods.

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Bibliographic Info

Paper provided by Pakistan Institute of Development Economics in its series PIDE-Working Papers with number 2000:177.

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Length: 25 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:pid:wpaper:2000:177

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References

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  1. 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.
  2. Jimenez, Emmanuel & Lockheed, Marlaine E. & Luna, Eduardo & Paqueo, Vicente, 1989. "School effects and costs for private and public schools in the Dominican Republic," Policy Research Working Paper Series 288, The World Bank.
  3. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, octubre-d.
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Cited by:
  1. Nasir, Zafar Mueen & Iqbal, Nasir, 2010. "Employers Size Wage Differential: Does Investment in Human Capital Matter?," MPRA Paper 27164, University Library of Munich, Germany.
  2. Das, Jishnu & Pandey, Priyanka & Zajonc, Tristan, 2006. "Learning levels and gaps in Pakistan," Policy Research Working Paper Series 4067, The World Bank.
  3. Awan, Masood Sarwar & Malik, Nouman & Sarwar, Haroon & Waqas, Muhammad, 2011. "Impact of education on poverty reduction," MPRA Paper 31826, University Library of Munich, Germany.
  4. Masood Sarwar Awan & Nasir Iqbal, 2010. "Determinants of Urban Poverty: The Case of Medium Sized City in Pakistan," PIDE-Working Papers 2010:60, Pakistan Institute of Development Economics.
  5. Awan, Masood Sarwar & Iqbal, Nasir & Muhammad, Waqas, 2011. "The impact of human capital on urban poverty: The case of Sargodha city," MPRA Paper 31829, University Library of Munich, Germany.
  6. Naushin Mahmood, 2009. "Population and Development Demographic Research at PIDE," PIDE Books, Pakistan Institute of Development Economics, number 2009:1 edited by Rashid Amjad & Aurangzeb A. Hashmi, June.
  7. Ali, Sharafat & Ahmad, Najid, 2013. "Human Capital and Poverty in Pakistan: Evidence from the Punjab Province," MPRA Paper 48876, University Library of Munich, Germany, revised Aug 2013.
  8. Ahsan, Henna & Idrees, Dr Muhammad, 2014. "Impact of Health on Earnings: Individual and District Level Analysis for Pakistan," MPRA Paper 56769, University Library of Munich, Germany, revised 20 Jun 2014.
  9. Safana, Shaheen & Masood, Sarwar & Muhammad, Waqas & Amir, Aslam, 2012. "Economic Analysis of Earnings in Pakistan: A Case of Sargodha District," MPRA Paper 41923, University Library of Munich, Germany.
  10. Muhammad Irfan, 2010. "A Review of the Labour Market Research at PIDE 1957-2009," PIDE Books, Pakistan Institute of Development Economics, number 2010:1 edited by Rashid Amjad & Aurangzeb A. Hashmi, June.
  11. Peter Thompson, 2003. "Technological Change and the Age-Earnings Profile: Evidence from the International Merchant Marine, 1861-1912," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 6(3), pages 578-601, July.
  12. Hina Nazli, 2004. "The Effect of Education, Experience and Occupation on Earnings: Evidence from Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 9(2), pages 1-30, Jul-Dec.

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