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Returns to Human Capital in Pakistan: A Gender Disaggregated Analysis

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  • Zafar Mueen Nasir

    (Pakistan Institute of Development Economics, Islamabad.)

Abstract

The impact of human capital variables on the earnings of regular wage employees is explored in this paper. Besides education and experience, literacy index, technical training, and school quality are included in the earning functions estimated for individuals. The credentialist view that education does not improve productivity—that it rather provides positive signals about productivity—is also tested. The results are based on the Pakistan Integrated Household Survey 1995-96 data, which provides information on many aspects of the individual’s characteristics missing in other surveys. The results of the study provide ample evidence in favour of human capital as a productivity-enhancing device for both male and female workers. All human capital variables are found to be statistically significant, having positive magnitude. The diploma effect is not very important for Pakistani workers, as only a few diploma dummies are statistically significant.

Suggested Citation

  • Zafar Mueen Nasir, 2002. "Returns to Human Capital in Pakistan: A Gender Disaggregated Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 41(1), pages 1-28.
  • Handle: RePEc:pid:journl:v:41:y:2002:i:1:p:1-28
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    File URL: http://www.pide.org.pk/pdf/PDR/2002/Volume1/1-28.pdf
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    References listed on IDEAS

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    Cited by:

    1. 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, September.
    2. Zafar Mueen Nasir, 2005. "An Analysis of Occupational Choice in Pakistan: A Multinomial Approach," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 44(1), pages 57-79.
    3. Jafarey, Saqib & Maiti, Dibyendu, 2015. "Glass slippers and glass ceilings: An analysis of marital anticipation and female education," Journal of Development Economics, Elsevier, vol. 115(C), pages 45-61.
    4. Monazza Aslam, 2006. "Rates of Return to Education by Gender in Pakistan," Economics Series Working Papers GPRG-WPS-064, University of Oxford, Department of Economics.
    5. repec:pid:journl:v:55:y:2016:i:4:p:837-851 is not listed on IDEAS
    6. Farhan Sami Khan & Imran Ashraf Toor, 2003. "Changes in Returns to Education in Pakistan: 1990-2002," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 8(2), pages 85-98, Jul-Dec.
    7. 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.
    8. Madeeha Gohar Qureshi, 2012. "The Gender Differences in School Enrolment and Returns to Education in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 51(3), pages 219-256.
    9. Abrar ul haq, Muhammad & Mehtab, Nadia & Khan, Tasneem, 2012. "Gender Disparity in Economic Returns to Higher Education: Evidence from Private Formal Sector of Bahawalpur (Pakistan)," MPRA Paper 62958, University Library of Munich, Germany, revised 2012.
    10. Shujaat Farooq, 2015. "Job Mismatches in Pakistan: Is there Some Wage Penalty to Graduates?," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(2), pages 147-164.
    11. repec:pje:journl:article13winii is not listed on IDEAS
    12. Muhammad Zahir Faridi & Ayesha Rashid, 2014. "The Correlates of Educated Women’s Labor Force Participation in Pakistan: A Micro-Study," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 19(2), pages 155-184, July-Dec.

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