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Effects of Human Capital on Farm and Non-Farm Productivity and Occupational Stratification in Rural Pakistan

  • Takashi Kurosaki
  • Humayun Khan
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    This paper investigates the effects of human capital on productivity using micro panel data of rural households in the NorthWest Frontier Province, Pakistan, where a substantial job stratification is observed in terms of income and education. To clarify the mechanism underlying this stratification, the human capital effects are estimated for wages(individual level) and for self-employed activities(household level), and for farm and non-farm sectors. Estimation results show a clear contrast between farm and non-farm sectors - wages and productivity in non-farm activities rise with education at an increasing rate, whereas those in agriculture respond only to the primary education.

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    File URL: http://hi-stat.ier.hit-u.ac.jp/research/discussion/2004/pdf/D04-46.pdf
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    Paper provided by Institute of Economic Research, Hitotsubashi University in its series Hi-Stat Discussion Paper Series with number d04-46.

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    Date of creation: Nov 2004
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    Handle: RePEc:hst:hstdps:d04-46
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    1. Dennis Tao Yang, 1997. "Education in Production: Measuring Labor Quality and Management," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 764-772.
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