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Changes in Returns to Education in Pakistan: 1990-2002

Author

Listed:
  • Farhan Sami Khan

    (Research Officer, Social Policy and Development Centre (SPDC), Karachi, Pakistan.)

  • Imran Ashraf Toor

    (Research Officer, Social Policy and Development Centre (SPDC), Karachi, Pakistan.)

Abstract

This paper examines the trends in marginal rates of return to various levels of education for paid employees and how rewards for additional investments at a particularlevel of education has changed over time. Although the findings are indicative of increasing returns at different educational levels (excluding Graduation) over the years, we find no evidence that additional investments atsuccessive levels bring consistently higher returns as highlighted by certain previous studies in Pakistan. The changes in returns at the primary and pre secondary levels have been found to be miniscule, taking the time spaninto consideration. The paper has also examined the returns to education between males and females and across urban and rural areas in view of the large disparities that exist by gender and region. Our findings indicate that although the wage structure may be biased in favour of males, additional investments made in female education accrue higher returns in comparison to males. Moreover, higher education is better rewarded in the urban areas whereas medium of instruction is a significant indicator of earning differentials in the labour market.

Suggested Citation

  • Farhan Sami Khan & Imran Ashraf Toor, 2003. "Changes in Returns to Education in Pakistan: 1990-2002," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 8(2), pages 85-98, Jul-Dec.
    • Handle: RePEc:lje:journl:v:8:y:2003:i:2:p:85-98
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    References listed on IDEAS

    as
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    Cited by:

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    2. Jamal, Haroon, 2015. "Private Returns to Education in Pakistan: A Statistical Investigation," MPRA Paper 70640, University Library of Munich, Germany.

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