Are There Returns to Schooling in Pakistan?

Type Journal Article - Quality in Education: Teaching and Leadership in Challenging Times.
Title Are There Returns to Schooling in Pakistan?
Volume 1
Publication (Day/Month/Year) 2007
Page numbers 389-400
URL​,5#​search="pakistan-Integrated Household Survey 2001-2002"
Nearly fifty-nine years after the initial target was set, the goal of universal primary education in Pakistan remains elusive. This study uses regression analysis to estimate returns to schooling on earnings in Pakistan to identify whether low income gains from education could be the reason for low educational demand in Pakistan. This study estimates returns for male income earners using data from the Pakistan Integrated Household Survey. Overall, the empirical results indicate very low returns to schooling in Pakistan. Moreover, these findings were emphasized through an analysis of the impact of the number of unpaid family workers and their education levels on the earnings of family establishments. The paper suggests that In order to achieve the target of universal primary education, it is imperative to implement policies to increase returns to education. Thus, there is a need to first identify whether low returns are the result of an economic environment that does not require high-skilled labour, or whether they result from poor quality of schooling in Pakistan that does not equip students with the necessary skills to facilitate increased productivity and earnings. Moreover, given the indication of high returns to English-medium schooling in urban areas, there is a need to invest in increasing access to English schools in order to spur higher returns to education. Finally, since this study focused only on returns for males, further research must be undertaken to identify returns to educational attainment for girls.

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