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Human capital and higher education: rate of returns across disciplines

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  • Jannet Farida Jacob

    (Centre for development Studies, Trivandrum, Kerala, India)

Abstract

This study attempts to examine the returns across various levels and majors in higher education using nationally representative India Human Development Survey (IHDS) data 2011-2012. Higher education here is taken as a heterogeneous sector with various majors each having varying demand in the labour market owing to skill differences. The existing literature on returns to higher education in India fails to assess the probable heterogeneity of returns to higher education across various majors. The present analysis draws on extended Mincerian earnings function to estimate the wage returns to different professional and non-professional degrees with varying majors. After correcting for selectivity bias following Heckman's two-step selectivity correction procedure, the results show highest returns for medical graduates followed by engineering graduates and professional postgraduates.

Suggested Citation

  • Jannet Farida Jacob, 2018. "Human capital and higher education: rate of returns across disciplines," Economics Bulletin, AccessEcon, vol. 38(2), pages 1241-1256.
    • Handle: RePEc:ebl:ecbull:eb-17-00854
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    More about this item

    Keywords

    Higher education; Returns to education; Human capital; Professional and Non-Professional Education; India;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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