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Education And Earnings In Pakistan

Author

Listed:
  • Zafar Mueen Nasir

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

  • Hina Nazli

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

Abstract

This paper examines the role of education, technical training, school quality and literacy and numeracy skills on the earnings of wage earners and salaried persons in Pakistan by using the recent data of PIHS (1995-96). The analysis confirms the positive role of education as each year of education brings approximately 7 percent returns for wage earners. In addition, the effect of literacy and numeracy skills is observed to be large and significant. The returns are 15 percent higher for those who have all three skills as compared to those who do not possess any of these skills. The impact of technical training and private schools is found to be positive and significant. This paper draws three main policy implications. First, a large and significant impact of literacy and numeracy skills highlights the importance of basic learning skills that leads to higher wages in the labour market. This suggests the need of enhancing literacy and numeracy skills through formal as well as informal education. Second, a positive and significant association between earnings and higher level of technical training implies the urgent need of such institutions that can train individuals on modern lines in order to cope with the rapidly changing technology. And third, a large and significant coefficient of private schools highlights the importance of quality of education. The results suggests that more emphasis should be placed on market oriented approach in education. This requires the overhauling of public school system not only in terms of curriculum but also in teaching methods.

Suggested Citation

  • Zafar Mueen Nasir & Hina Nazli, 2000. "Education And Earnings In Pakistan," PIDE-Working Papers 2000:177, Pakistan Institute of Development Economics.
  • Handle: RePEc:pid:wpaper:2000:177
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    File URL: http://www.pide.org.pk/Research/Report177.pdf
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    References listed on IDEAS

    as
    1. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters,in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
    2. Jimenez, Emmanuel*Lockheed, Marlaine E.*Luna, Ed, 1989. "School effects and costs for private and public schools in the Dominican Republic," Policy Research Working Paper Series 288, The World Bank.
    3. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, January.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Zafar Mueen Nasir & Nasir Iqbal, 2009. "Employers Size Wage Differential: Does Investment in Human Capital Matter?," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 48(4), pages 509-521.
    2. Nasir Iqbal & Masood Sarwar Awan, 2015. "Determinants of Urban Poverty: The Case of Medium Sized City in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(4), pages 719-738.
    3. Awan, Masood Sarwar & Iqbal, Nasir & Muhammad, Waqas, 2011. "The impact of human capital on urban poverty: The case of Sargodha city," MPRA Paper 31829, University Library of Munich, Germany.
    4. Atta Ullah Khan & Abdul Saboor & Ikram Ali & Wasim Shahid Malik & Khalid Mahmood, 2016. "Urbanization of multidimensional poverty: empirical evidences from Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(1), pages 439-469, January.
    5. Ali, Sharafat & Ahmad, Najid, 2013. "Human Capital and Poverty in Pakistan: Evidence from the Punjab Province," MPRA Paper 48876, University Library of Munich, Germany, revised Aug 2013.
    6. Atta Khan & Abdul Saboor & Abid Hussain & Shumaila Sadiq & Abdul Mohsin, 2014. "Investigating Multidimensional Poverty across the Regions in the Sindh Province of Pakistan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 119(2), pages 515-532, November.
    7. 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.
    8. repec:asi:ajemod:2018:p:90-97 is not listed on IDEAS
    9. Jamal, Haroon, 2015. "Private Returns to Education in Pakistan: A Statistical Investigation," MPRA Paper 70640, University Library of Munich, Germany.
    10. 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.
    11. Peter Thompson, 2003. "Technological Change and the Age-Earnings Profile: Evidence from the International Merchant Marine, 1861-1912," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 6(3), pages 578-601, July.
    12. Muhammad Jamil & Ahmed Imran Hunjra & Babar Khalid, 2014. "Important Factors of Human Resource Development in Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 3(1), pages 1-12, March.
    13. Gulnaz Hameed & Abdul Saboor & Atta Ullah Khan & Ikram Ali & Mohsin Khan Wazir, 2017. "Impact of Community Development in Poverty Reduction: Reflections of Azad Jammu and Kashmir Community Development Program," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(3), pages 1073-1086, February.
    14. Naushin Mahmood, 2009. "Population and Development Demographic Research at PIDE," PIDE Books, Pakistan Institute of Development Economics, number 2009:1 edited by Rashid Amjad & Aurangzeb A. Hashmi, September.
    15. Das, Jishnu & Pandey, Priyanka & Zajonc, Tristan, 2006. "Learning levels and gaps in Pakistan," Policy Research Working Paper Series 4067, The World Bank.
    16. 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.
    17. 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.
    18. Ahsan, Henna & Idrees, Dr Muhammad, 2014. "Impact of Health on Earnings: Individual and District Level Analysis for Pakistan," MPRA Paper 56769, University Library of Munich, Germany, revised 20 Jun 2014.
    19. Awan, Masood Sarwar & Malik, Nouman & Sarwar, Haroon & Waqas, Muhammad, 2011. "Impact of education on poverty reduction," MPRA Paper 31826, University Library of Munich, Germany.

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