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Economic Analysis of Earnings in Pakistan: A Case of Sargodha District

Author

Listed:
  • Safana, Shaheen
  • Masood, Sarwar
  • Muhammad, Waqas
  • Amir, Aslam

Abstract

This paper investigates human capital and socio-economic factors in order to find out the personal earnings of workers in Sargodha District. The Multiple Indicator Cluster Survey data 2007-08 of Punjab has been used. Education and age are used as variables for human capital whereas, gender, age, age square, different classes of age, marital status, area, different education level, employment status, and tehsil dummies are used to investigate the determinants of personal earnings of the workers of Sargodha district. Ordinary least square results explore that education and age plays an important role in the determination of personal wage. Moreover, as the level of education increases the returns to each year of education also increases. Male workers earn more than female which indicates gender discrimination in the labour market. The most productive age is 40-45 years. The individual belongs to rural areas earn more than urban counterparts. When we analyzed the earning pattern in the context of different occupational classes the magnitude of agricultural sector is high. Hence, these facts highlight the importance of a district level growth/economic strategy because the dynamics and geography of each district is different from the other and the earning pattern of a particular district is closely aligned with its demographic conditions.

Suggested Citation

  • 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.
  • Handle: RePEc:pra:mprapa:41923
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    File URL: https://mpra.ub.uni-muenchen.de/41923/1/MPRA_paper_41923.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. Masood Sarwar Awan & Zakir Hussain, 2007. "Returns to Education and Gender Differentials in Wages in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 12(2), pages 49-68, Jul-Dec.
    4. 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.
    5. Mohammad Niaz Asadullah, 2006. "Returns to Education in Bangladesh," Education Economics, Taylor & Francis Journals, vol. 14(4), pages 453-468.
    6. Shahnawaz Malik, 1996. "Determinants of Rural Poverty in Pakistan: A Micro Study," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 35(2), pages 171-187.
    7. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, June.
    8. Awan, Masood Sarwar & Malik, Nouman & Sarwar, Haroon & Waqas, Muhammad, 2011. "Impact of education on poverty reduction," MPRA Paper 31826, University Library of Munich, Germany.
    9. Hanushek, Eric A, 1986. "The Economics of Schooling: Production and Efficiency in Public Schools," Journal of Economic Literature, American Economic Association, vol. 24(3), pages 1141-1177, September.
    10. Zafar Mueen Nasir & Hina Nazli, 2000. "Education And Earnings In Pakistan," PIDE-Working Papers 2000:177, Pakistan Institute of Development Economics.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Human Capital; New Growth Strategy; Sargodha; Earnings;

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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