MICROECONOMETRIC ANALYSIS OF EARNINGS ORIENTED EDUCATIONAL SYSTEM OF LAHORE (PAKISTAN)

This study explores the factors that affect earnings and estimates returns to education (RTEdu) for the workforce of educational institutions in Lahore (Pakistan). Primary data were collected by the researcher himself from a sample of 8327 respondents in 2011. Education, experience, training, computer use, gender, marital status, institution sector from where the respondent has completed Secondary School Certificate, nature of job, family background, and family status are found to be contributing to the earnings of the workforce of various categories of the educational institutions. RTEdu for the workforce of schools, colleges and universities increases, on average, by 12.4, 15.8, and 12.5 percent, respectively for every one year increase in schooling. RTEdu has been found higher for the workforce of various categories of private sector as compared to the workforce of various categories of public sector educational institutions. Human capital theory is found to be valid. The concavity in experience-earning profile is observed. This study recommends some solid measures that address, reduce and minimize the ever widening relative earning differentials.