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Impact of Training on Earnings: Evidence from Pakistani Industries

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  • 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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    File URL: https://mpra.ub.uni-muenchen.de/19570/1/MPRA_paper_19570.pdf
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    References listed on IDEAS

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    2. Muhammad Akram & Faheem Jehangir Khan, 2007. "Public Provision of Education and Government Spending in Pakistan," PIDE-Working Papers 2007:40, Pakistan Institute of Development Economics.
    3. 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.
    4. 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.
    5. Hyder, Asma, 2007. "Wage Differentials, Rate of Return toEducation, and Occupational WageShare in the Labour Market of Pakistan," MPRA Paper 2224, University Library of Munich, Germany.
    6. 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.
    7. 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.
    8. 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.
    9. Card, David, 2001. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," Econometrica, Econometric Society, vol. 69(5), pages 1127-1160, September.
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    11. 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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    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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    More about this item

    Keywords

    Wages; Investment in human capital; Training; Cross-section data; Industries; Developing country;
    All these keywords.

    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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