Province-Wise Growth Patterns in Human Capital Accumulation

Download PDF

This report is motivated to fill the gap in policy analysis by estimating the human capital index (HCI) at the provincial level from 1982-83 to 2001-02. The accumulated human capital is estimated using the Labourincome based methodology. The index is computed for the three sectors of the economy: Agriculture, Manufacturing and Services, by using data from respective Labour Force Surveys. The estimation is divided into three steps: (i) computation of the relative wage rates, a proxy for productivity, (ii) estimation of the proportion of employed labour force in each sector, by province, according to level of education, and age, (iii) multiplication of productivity with total employed labour force, by education level, and age, in each respective sector, by province.