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Rates of Returns to Education and the Determinants of Earnings in Pakistan

Author

Listed:
  • SHAHRUKH RAFI KHAN

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

  • MOHAMMAD IRFAN

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

Abstract

This paper is a straightforward exercise in estimating earnings functions and computing the private rates of returns to different levels of education. The latter summarizes the incentives to the individual to invest in human capital formation, while the former helps in ascertaining the influence of both human and non· human capital variables on the earnings of the individual. A few studies conducted in the past found the rates of returns to education in Pakistan not in conformity with those of the majority of the developing countries for which such estimates exist. The estimated rates were lower for all levels of education in Pakistan than in the develop· ing world. Moreover, the computed rates of returns had a positive association with the level of education.

Suggested Citation

  • Shahrukh Rafi Khan & Mohammad Irfan, 1985. "Rates of Returns to Education and the Determinants of Earnings in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 24(3-4), pages 671-683.
  • Handle: RePEc:pid:journl:v:24:y:1985:i:3-4:p:671-683
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    Cited by:

    1. Ather Maqsood Ahmed & Ismail Sirageldin, 1994. "Internal Migration, Earnings, and the Importance of Self-selection," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 33(3), pages 211-227.
    2. Najam US Saqib, 1998. "A Critical Assessment of Free Public Schooling in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(4), pages 955-976.
    3. Psacharopoulos, George & Tzannatos, Zafiris, 1992. "Latin American women's earnings and participation in the labor force," Policy Research Working Paper Series 856, The World Bank.
    4. 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.
    5. repec:pid:journl:v:55:y:2016:i:4:p:837-851 is not listed on IDEAS
    6. Muhammad Sabir & Zehra Aftab, 2006. "Province-wise Growth Patterns in Human Capital Accumulation," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(4), pages 873-890.
    7. Zafar Mueen Nasir, 1999. "Do Private Schools Produce More Productive Workers?," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(4), pages 937-954.
    8. Khwaja Sarmad & Fazal Husain & G. M. Zahid, 1989. "The Education Sector in Pakistan," PIDE-Working Papers 1989:156, Pakistan Institute of Development Economics.
    9. Sajid Amin Javed & Mohammad Irfan, 2014. "Intergenerational Mobility: Evidence from Pakistan Panel Household Survey," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 53(2), pages 175-203.
    10. Zafar Mueen Nasir, 1998. "Determinants of Personal Earnings in Pakistan: Findings from the Labour Force Survey 1993-94," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(3), pages 251-274.
    11. Muhammad Sabir & Zehra Aftab, 2007. "Dynamism in the Gender Wage Gap: Evidence from Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 46(4), pages 865-882.
    12. Monazza Aslam, 2009. "Education Gender Gaps in Pakistan: Is the Labor Market to Blame?," Economic Development and Cultural Change, University of Chicago Press, vol. 57(4), pages 747-784, July.
    13. Nadia Asghar & Muhammad Waqas Chughtai, 2012. "Becker & Mincerian Models of Human Capital for Pakistan: A Case Study of Islamabad," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 8(6), pages 138-145, December.

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