The Returns to Education for Male and Female Workers in Pakistan

Abstract

The main objective of this study was to estimate and determine the factors that determine the monthly earnings of the male and female workers in Pakistan. Separate regressions for male and female workers were obtained based on Pakistan Social and Living Standard Measurement (PSLM) survey (2004-05) of the federal bureau of statistics Islamabad. While schooling was found to be a significant determinant of monthly earnings of both male and female worker, experience played a greater role in male’s monthly earnings. Schooling on the other hand, played a greater role in female’s monthly income than experience which shows frequent intervals in job experience of female worker. The returns to primary and middle standard education of both the male and female workers were lower as compared to higher levels of education. Regarding the different types of professional educational fields of study such as medical, engineering, agriculture and computer science, the returns to medical (MBBS) were higher (28.2%) for female than other categories. Both male and female workers with computer science degree earned about equal returns. However, degree in agriculture increased the income of female worker by 5.8 percent while in the case of a male worker it was only 1.7 percent. In terms of location, both male and female worker received higher income in the urban areas as compared to rural areas, although the male worker received higher return than female worker in urban areas. An analysis by provinces shows that female worker earned higher rates of returns in all the provinces indicating better prospects for female workers.