Impact of Education on Students Earnings: A Case of Public Sector Universities in Pakistan
8 Pages Posted: 21 Aug 2010 Last revised: 26 May 2011
Date Written: August 3, 2010
Education plays vital role in human capital formation. The main purpose of this paper is to analyze the impact of different education levels on students’ earnings. We have followed Mincerian human capital model. Data is collected through field survey about various educational levels of students from two public sector universities one from upper Punjab (University of the Punjab, Lahore) and the other from lower Punjab (Bahauddin Zakariya University, Multan). The sample consists on 200 students. We made our analysis on two stages. At the first stage, we have presented the descriptive/statistical analysis of the data. At the second stage, we have made an econometric analysis. Descriptive analysis of the data shows a positive trend between higher education and monthly earnings of the students. Secondly, we have applied Ordinary Least Square Method to analyze the impact of Educational level on Students’ earnings. According to our results, completed years of education and experience in years are positively and significantly contributing to monthly earnings of students in first model. At Each education levels, the monthly earnings of students are increasing and have significant impact on earnings of students. Study shows that Ph.D and M.Phil students can earn more than bachelor students. This indicates positive contribution of educational level in earnings. Experience and number of hours worked also have a positive contribution in monthly earnings. Study suggests that Govt. should give scholarships to the students and make proper arrangements for the needy students.
Keywords: Education Level, Experience, Working Hours, Students’ Monthly Earnings
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