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The Returns to Endogenous Human Capital in Pakistan's Rural Wage Labour Market

Year: 1996

Type: article

Abstract: This paper estimates the private returns to human capital in Pakistani rural labour markets. The rich data used permit inclusion of several dimensions of human capital and control for endogeneity resulting from investment in human capital. The results suggest that, without data on determinants of human capital, it would not be possible to disentangle the separate effect of each dimension of human capital on wage differentials nor to distinguish human capital explanations for wage differentials from signalling and credentialist models. With control for endogeneity of human capital and selectivity into wage employment, cognitive achievement, but not schooling attainment separate from cognitive achievement nor long‐run health status, affects wage differentials.

Source: Oxford Bulletin of Economics and Statistics

DOI: 10.1111/j.1468-0084.1996.mp58001003.x

Authors: Harold Alderman, Jere R. Behrman, David R. Ross, Richard Sabot

Institutions: Bryn Mawr College, World Bank, Williams College, University of Pennsylvania

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities, No poverty

Open Access status: green

Funders: United States Agency for International Development, World Bank Group, International Fine Particle Research Institute