Private Returns to Education: Evidence for Pakistan

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The study provides estimates of the private return to education in Pakistan. A Mincerian earning function is estimated using the latest available household survey data of 2001-02. Inter-provincial, inter-sectoral and inter-regional variations in earning and educational attainment are explored. The paper also investigates the inter-temporal changes in returns using the household survey of 1990-91. The impact of quality of education on earning is also estimated. The empirical result indicates that highest private return is associated with higher secondary education. The impacts of private schooling and English as a medium of instruction are also positive and significant. The results also indicate that returns to primary education decreased during the last decade while returns to higher secondary and tertiary education increased.