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Education Gender Gaps in Pakistan: Is the Labor Market to Blame?

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  • Monazza Aslam

Abstract

Differential labor market returns to male and female education are one potential explanation for large gender gaps in education in Pakistan. We empirically test this explanation by estimating private returns to education separately for male and female wage earners. This article contributes to the literature by using a variety of methodologies (ordinary least squares, Heckman correction, two-stage least squares, and household fixed effects) in order to estimate economic returns to education. The latest nationally representative data-the Pakistan Integrated Household Survey (2002)-are used. Earnings function estimates consistently reveal a sizable gender asymmetry in economic returns to education, with returns to women's education being substantially and statistically significantly higher than men's. The return to an additional year of schooling ranges between 7% and 11% for men and between 13% and 18% for women. There are also large, direct returns to women's education at low levels of schooling, and the education-earnings profile is more convex for women than for men. However, a decomposition of the gender wage gap (into the component "explained" by differing male and female endowments and the residual component) suggests that there is highly differentiated treatment by employers. We conclude that the total labor market returns are much higher for men, despite returns to education being higher for women. This suggests that parents may have an investment motive in allocating more resources to boys than to girls within households. (c) 2009 by The University of Chicago. All rights reserved.

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  • 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.
  • Handle: RePEc:ucp:ecdecc:v:57:y:2009:i:4:p:747-784
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    Cited by:

    1. Monazza Aslam & Shenila Rawal, 2013. "Preparing Women of Substance? Education, Training, and Labor Market Outcomes for Women in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 18(Special E), pages 93-128, September.
    2. Nadir Altinok & Abdurrahman Aydemir, 2015. "The Unfolding of Gender Gap in Education," Working Papers halshs-01204805, HAL.
    3. Yamauchi, Futoshi & Liu, Yanyan, 2011. "Girls take over: Long-term impacts of an early stage education intervention in the Philippines," IFPRI discussion papers 1144, International Food Policy Research Institute (IFPRI).
    4. Maertens, Annemie, 2013. "Social Norms and Aspirations: Age of Marriage and Education in Rural India," World Development, Elsevier, vol. 47(C), pages 1-15.
    5. Ahmed, Salma & McGillivray, Mark, 2015. "Human Capital, Discrimination, and the Gender Wage Gap in Bangladesh," World Development, Elsevier, vol. 67(C), pages 506-524.
    6. Jafarey, S. & Mainali, R. M. & Montes-Rojas, G., 2014. "The Anticipation Effect of Marriage on Female Education: Theory and Evidence from Nepal," Working Papers 15/12, Department of Economics, City University London.
    7. Aslam, Monazza & Kingdon, Geeta Gandhi, 2012. "Parental Education and Child Health—Understanding the Pathways of Impact in Pakistan," World Development, Elsevier, vol. 40(10), pages 2014-2032.
    8. Aslam, Monazza & Kingdon, Geeta, 2011. "What can teachers do to raise pupil achievement?," Economics of Education Review, Elsevier, vol. 30(3), pages 559-574, June.
    9. Yamauchi, Futoshi & Liu, Yanyan, 2012. "School quality, labor markets and human capital investments : long-term impacts of an early stage education intervention in the Philippines," Policy Research Working Paper Series 6247, The World Bank.
    10. Fomba Kamga, Benjamin, 2012. "Contrats de travail et segmentation du marché du travail dans le secteur manufacturier camerounais," L'Actualité Economique, Société Canadienne de Science Economique, vol. 88(2), pages 197-229, Juin.
    11. Grace Lordan, 2011. "Unplanned Pregnancy & the Impact on Sibling Health Outcomes," Discussion Papers Series 419, School of Economics, University of Queensland, Australia.
    12. Kenayathulla, Husaina Banu, 2016. "Gender differences in intra-household educational expenditures in Malaysia," International Journal of Educational Development, Elsevier, vol. 46(C), pages 59-73.
    13. Kenayathulla, Husaina Banu, 2013. "Higher levels of education for higher private returns: New evidence from Malaysia," International Journal of Educational Development, Elsevier, vol. 33(4), pages 380-393.
    14. Eric Manes, 2009. "Pakistan's Investment Climate : Laying the Foundation for Growth, Volume 2. Annexes," World Bank Other Operational Studies 12411, The World Bank.
    15. Dumauli, Magdalena Triasih, 2015. "Estimate of the private return on education in Indonesia: Evidence from sibling data," International Journal of Educational Development, Elsevier, vol. 42(C), pages 14-24.
    16. Delavande, Adeline & Zafar, Basit, 2013. "Gender discrimination and social identity: experimental evidence from urban Pakistan," Staff Reports 593, Federal Reserve Bank of New York.
    17. 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.
    18. Nadereh Chamlou & Silvia Muzi & Hanane Ahmed, 2011. "Understanding the Determinants of Female Labor Force Participation in the Middle East and North Africa Region: The Role of Education and Social Norms in Amman," Working Papers 31, AlmaLaurea Inter-University Consortium.
    19. Jamal, Haroon, 2015. "Private Returns to Education in Pakistan: A Statistical Investigation," MPRA Paper 70640, University Library of Munich, Germany.
    20. Lamichhane, Kamal & Watanabe, Takayuki, 2015. "The Effect of Disability and Gender on Returns to the Investment in Education: A Case from Metro Manilla of the Philippines," Working Papers 103, JICA Research Institute.
    21. Aslam, Monazza & Kingdon, Geeta Gandhi, 2012. "Parental Education and Child Health—Understanding the Pathways of Impact in Pakistan," World Development, Elsevier, vol. 40(10), pages 2014-2032.

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