IDEAS home Printed from
   My bibliography  Save this article

Estimating Private Rate Of Retun On Higher Education In Pakistan


  • Malik Fahim BASHIR

    () (Department of Management Sciences, COMSATS Institute of Information Technology Abbottabad, Pakistan)

  • Muhammad Mazhar IQBAL

    () (Department of Economics, Quaid-i-Azam University, Islamabad, Pakistan)

  • Khalid ZAMAN

    () (Department of Management Sciences, COMSATS Institute of Information Technology, Abbottabad, Pakistan)


The current study focuses primarily on estimating private rate of return for two successive degrees of higher education in Pakistan namely M.Phil and PhD. Sensitivity analysis on calculations of the average private rate of return to university education is undertaken. This involves checking how estimates of the rate of return vary with key assumptions used to calculate the rate of return. Further, to estimate internal rate of returns, explicit & implicit costs and earnings on BPS-2005 scale to which a degree holder is eligible to apply. Estimates of the rate of return to a university degree would provide one measure of the net monetary benefits from higher education. Result reveals that private rate of return is extremely low for M.Phil and PhD degrees that can explain dismay situation of higher education in the country. To boost higher education, private rate of return must increase that can be achieved effectively either by raising pay scales, or by giving interest-free scholarships or by increasing retirement age.

Suggested Citation

  • Malik Fahim BASHIR & Muhammad Mazhar IQBAL & Khalid ZAMAN, 2011. "Estimating Private Rate Of Retun On Higher Education In Pakistan," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 7, pages 179-197, May.
  • Handle: RePEc:aic:revebs:y:2011:i:7:bashirm

    Download full text from publisher

    Download Restriction: no

    More about this item


    Education; Human Capital; Economic Growth; Cost Benefit Analysis; Public Sector; Pakistan;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions


    Access and download statistics


    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:aic:revebs:y:2011:i:7:bashirm. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sireteanu Napoleon-Alexandru). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.