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Impact of Training on Earnings: Evidence from Pakistani Industries

Author

Listed:
  • Asma, Hyder
  • Javaid, Zainab

Abstract

Training and skills development play a vital role in individual’s productive capacity and are integral part of Human Resource Development (HRD). This study aims to examine the role of training in determination of wages. By utilizing the cross-sectional data from Labor Force Survey 2005-06, results have shown that training is not significant in the determination of wages, which shows the poor quality of training in the overall economy. Results were obtained by Ordinary Least Square (OLS) technique. However, schooling and other demographic variables have expected signs and magnitudes. The recommendations of the study based on empirical findings are toward technical education and vocational training institutions; they should ideally have to devise their technical education and vocational training exactly according to the requirements of industry. Empirical results also emphasize to improve the quality of training.

Suggested Citation

  • Asma, Hyder & Javaid, Zainab, 2009. "Impact of Training on Earnings: Evidence from Pakistani Industries," MPRA Paper 19570, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:19570
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    References listed on IDEAS

    as
    1. Muhammad Akram & Faheem Jehangir Khan, 2007. "Public Provision of Education and Government Spending in Pakistan," Governance Working Papers 22183, East Asian Bureau of Economic Research.
    2. David O’Connor & Mariarosa Lunati, 1999. "Economic Opening and the Demand for Skills in Developing Countries: A Review of Theory and Evidence," OECD Development Centre Working Papers 149, OECD Publishing.
    3. Anderson, Jock R. & Feder, Gershon & Ganguly, Sushma, 2006. "The rise and fall of training and visit extension : an Asian mini-drama with an African epilogue," Policy Research Working Paper Series 3928, The World Bank.
    4. Hussain, Syed Sajidin & Byerlee, Derek & Heisey, Paul W., 1994. "Impacts of the training and visit extension system on farmers' knowledge and adoption of technology: Evidence from Pakistan," Agricultural Economics, Blackwell, vol. 10(1), pages 39-47, January.
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    6. Jerik Hanushek & Dennis Kimko, 2006. "Schooling, Labor-force Quality, and the Growth of Nations," Voprosy obrazovaniya / Educational Studies Moscow, National Research University Higher School of Economics, issue 1, pages 154-193.
    7. Wayne Simpson, 1984. "An Econometric Analysis of Industrial Training in Canada," Journal of Human Resources, University of Wisconsin Press, vol. 19(4), pages 435-451.
    8. Asma Hyder, 2007. "Wage Differentials, Rate of Return to Education, and Occupational Wage Share in the Labour Market of Pakistan," PIDE-Working Papers 2007:17, Pakistan Institute of Development Economics.
    9. Syed Sajidin Hussain & Derek Byerlee & Paul W. Heisey, 1994. "Impacts of the training and visit extension system on farmers' knowledge and adoption of technology: Evidence from Pakistan," Agricultural Economics, International Association of Agricultural Economists, vol. 10(1), pages 39-47, January.
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    Cited by:

    1. Asghar Ali & Iqbal Ahmad & M. Anees-ul-Husnain Shah, 2017. "Exploring Factors Influencing Employability ofVocational Training Graduates in Pakistan:A Factor Analysis," Global Regional Review, Humanity Only, vol. 2(1), pages 389-404, June.

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    Keywords

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    JEL classification:

    • A20 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - General
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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