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

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  • Takashi Kurosaki
  • Humayun Khan

Abstract

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.

Suggested Citation

  • Takashi Kurosaki & Humayun Khan, 2004. "Effects of Human Capital on Farm and Non-Farm Productivity and Occupational Stratification in Rural Pakistan," Hi-Stat Discussion Paper Series d04-46, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hst:hstdps:d04-46
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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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    References listed on IDEAS

    as
    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.
    2. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-512, March.
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    Cited by:

    1. Phanhpakit ONPHANHDALA & Terukazu SURUGA, 2010. "Entrepreneurial Human Capital And Micro And Small Business In Lao Pdr," The Developing Economies, Institute of Developing Economies, vol. 48(2), pages 181-202, June.
    2. Rakhshanda, Kousar & Awudu, Abdulai, 2013. "Impacts of rural non-farm employment on household welfare in Pakistan," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149890, Italian Association of Agricultural and Applied Economics (AIEAA).
    3. Oukham Sisounonth & Xayphone Kongmanila, 2014. "A Study on SME Development in Laos: The Case of Commerce Sector in Vientiane Capital," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 2(6), pages 246-255, June.
    4. Takashi Kurosaki & Humayun Khan, 2006. "Human Capital, Productivity, and Stratification in Rural Pakistan," Review of Development Economics, Wiley Blackwell, vol. 10(1), pages 116-134, February.
    5. Souksavanh VIXATHEP, 2017. "Entrepreneurship, Human and Social Capital, and Government Policy in Small and Medium Enterprise Development in Laos," Japan Social Innovation Journal, University of Hyogo Institute for Policy Analysis and Social Innovation, vol. 7(1), pages 1-33, March.
    6. Souksavanh VIXATHEP, 2014. "Entrepreneurship, Government Policy and Performance of SMEs in Laos," GSICS Working Paper Series 28, Graduate School of International Cooperation Studies, Kobe University.
    7. Masakazu Hojo, 2012. "Shared literacy and employment in the nonfarm sector," Applied Economics, Taylor & Francis Journals, vol. 44(10), pages 1209-1217, April.
    8. Phanhpakit ONPHANHDALA, 2009. "Farmer Education and Agricultural Efficiency: Evidence from Lao PDR," GSICS Working Paper Series 20, Graduate School of International Cooperation Studies, Kobe University.
    9. ERREYGERS, Guido & FEREDE, Tadele, 2009. "The end of subsistence farming: Growth dynamics and investments in human and environmental capital in rural Ethiopia," Working Papers 2009008, University of Antwerp, Faculty of Business and Economics.
    10. Souksavanh VIXATHEP & Nobuaki MATSUNAGA, 2015. "Entrepreneurial Human and Social Capital in Small Businesses in Vietnam - An Extended Analysis -," GSICS Working Paper Series 29, Graduate School of International Cooperation Studies, Kobe University.

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    More about this item

    Keywords

    human capital; returns to education; non-farm employment; self-employment;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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