Estimating the Economic Return and Cost to Different Degree Programs: A Case Study of Public Sector in Pakistan

The FedUni Journal of Higher Education, pp. 7-21, November 2010

Posted: 25 Jan 2011

See all articles by Malik Fahim Bahsir

Malik Fahim Bahsir

COMSATS Institute of Information Technology (CIIT)

Mazhar Iqbal

Quaid-i-Azam University

Khalid Zaman

COMSATS Institute of Information Technology (CIIT)

Iqtidar Ali Shah

COMSATS Institute of Information Technology (CIIT)

Date Written: January 24, 2011

Abstract

Education is a key factor for the growth of human capital. Human capital is directly related to economic growth and development of a country. This paper looks at the economic returns and cost to different fields of study in Pakistan. To assess the return to education, two main degree program - master’s and professional bachelor’s - are taken into account. Benefits to the individual have been calculated using the government pay scale. Household income data and individual expenditure have been used for calculating per capita educational expenditure. This data has been derived from Pakistan Social and Living Standard Measurement Survey (2004-05). The data is analyzed using Net Present Value (NPV) and Internal Rate of Return (IRR). The result reveals that the rate of return calculated for master’s degree is 26.52% which is comparatively more than professional bachelor’s degree as it is calculated as 23.83%. The results presented in this study are important to government, academic, and policy makers.

Suggested Citation

Bahsir, Malik Fahim and Iqbal, Mazhar and Zaman, Khalid and Shah, Iqtidar Ali, Estimating the Economic Return and Cost to Different Degree Programs: A Case Study of Public Sector in Pakistan (January 24, 2011). The FedUni Journal of Higher Education, pp. 7-21, November 2010, Available at SSRN: https://ssrn.com/abstract=1746729

Malik Fahim Bahsir (Contact Author)

COMSATS Institute of Information Technology (CIIT) ( email )

Park Road
Chak Shahzad
Islamabad, North-West Frontier Province 44000
Pakistan

Mazhar Iqbal

Quaid-i-Azam University ( email )

Islamabad
Pakistan

Khalid Zaman

COMSATS Institute of Information Technology (CIIT) ( email )

Plot #30, H-8/1
University Road Abbottabad
Abbottabad, North-West Frontier Province 22060
Pakistan
0334-8982744 (Phone)

Iqtidar Ali Shah

COMSATS Institute of Information Technology (CIIT) ( email )

Park Road
Chak Shahzad
Islamabad, North-West Frontier Province 44000
Pakistan

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
453
PlumX Metrics