Returns to Human Capital in Pakistan: A Quantile Regression Analysis

Type Journal Article - Actual Problems of Economics
Title Returns to Human Capital in Pakistan: A Quantile Regression Analysis
Author(s)
Volume 139
Issue 1
Publication (Day/Month/Year) 2013
Page numbers 486-491
URL http://www.researchgate.net/publication/256075088_RETURNS_TO_HUMAN_CAPITAL_IN_PAKISTAN_A_QUANTILE_RE​GRESSION_ANALYSIS/file/60b7d5216f3a5d88c0.pdf
Abstract
The quantile regression technique has been utilized to examine how the effect of education and experience varies across the earning distribution in Pakistan. The findings of the study are based on Pakistani social and living standards measurement survey (20072008). The effect of education and experience on earnings is positive and statistically significant at each of the quantiles. The esti mated coefficients show that both the variables affect earnings of the individuals differently at different parts of earning distribution. Moreover, education has a higher effect at higher quantiles which shows complementarity between ability and education. The effect of experience on earning falls monotonically, as we move from lower to upper quantiles of the conditional earnings distribution.

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