IDEAS home Printed from
MyIDEAS: Login to save this article

Mincerian Earnings Function for Pakistan

  • Tayyeb Shabbir

    (Pakistan Institute of Development Economics, Islamabad.)

Registered author(s):

    Due to its central role in various debates about the determinants of individual earnings, the Mincerian earnings function (MEF) as given in Mincer (1974) has attracted the attention of many economists. The MEF has been estimated virtually for every country except Pakistan, where a necessary condition has been missing, i.e., national level data on the exact number of years of schooling completed has not been available; instead, in a majority of the relevant micro-level surveys, schooling has been measured only in terms of a 'categorical' variable with possible values being 'Primary and Incomplete Middle', 'Middle and Incomplete Matric', etc. At best, this data deficiency has restricted the existing estimated earnings functions to what we refer to as the 'Dummies earnings functions' (DEF) since they are constrained to specify schooling in terms of a set of dichotomous dummy variables. Using a nationally representative data on male earners, this study tries to fill the above gap by estimating the MEF both in its 'strict' as well as the 'extended' forms. In terms of the 'strict' MEF, i.e., the one analogous to Mincer's (1974) specification which essentially treats earnings as a function of schooling and job-market experience, the main findings are mat the marginal rate of return to schooling is 8 percent, the experience-earnings profile is consistent with the pattern suggested by the human capital theory and as much as 41 percent of the variance in log earnings is accounted for by the strictly defined MEF. By and large, these findings are consistent with those implied by estimated MEFs for comparable LDCs. Further, the present study also estimates 'extended' MEF, whose specification supplements that of the 'strict' MEF by adding variables to control for urban vs rural background, occupational categories, employment status, and provincial heterogeneity. The 'extended' MEFs are also estimated separately for urban and rural samples and for each province. Formal 'Chow-type F tests' conducted to test for homogeneity of the parameters of MEF across different sub-samples reveal 'pervasive' segmentation across the above strata.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

    Volume (Year): 33 (1994)
    Issue (Month): 1 ()
    Pages: 1-18

    in new window

    Handle: RePEc:pid:journl:v:33:y:1994:i:1:p:1-18
    Contact details of provider: Postal:
    P.O.Box 1091, Islamabad-44000

    Phone: (92)(51)9248051
    Fax: (92)(51)9248065
    Web page:

    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Behrman, Jere R & Birdsall, Nancy, 1983. "The Quality of Schooling: Quantity Alone is Misleading," American Economic Review, American Economic Association, vol. 73(5), pages 928-46, December.
    2. Psacharopoulos, George, 1977. "Schooling, experience and earnings : The case of an LDC," Journal of Development Economics, Elsevier, vol. 4(1), pages 39-48, February.
    3. Guisinger, Stephen E. & Henderson, James W. & Scully, Gerald W., 1984. "Earnings, rates of return to education and the earnings distribution in Pakistan," Economics of Education Review, Elsevier, vol. 3(4), pages 257-267, August.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:pid:journl:v:33:y:1994:i:1:p:1-18. 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: (Khurram Iqbal)

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.