Impact Of Higher Education On Earnings Of Women In The Public Sector Educational Institutions In Pakistan

Abstract

Formal education is one of the most important components of “human capital”. The Economics of Education and especially the role of education in growth and development became prominent topics during the early years of the 1960’s. T.W. Schultz, Gary Becker and others applied the new “human capital” frame work to the study of education and other activities that had until then been considered outside the mainstream of economic analysis. It is a universally accepted fact that universal primary education is very important for a country’s development and so is the secondary education as it forms a basis for higher education and technical/vocational training. However, economists differ in view with respect to the importance of higher education. The main purpose of this study was to find the impact of Higher Education and Experience on the Earnings of women teaching at public sector educational institutions in Pakistan. The Higher Education Commission of Pakistan has been trying to encourage the spread of higher education in Pakistan during the past three years or so. The study tried to see whether the emphasis is well placed or not. Data was collected about the qualification level, experience and monthly “take home” salary (March 2004) of female teachers in Islamabad. Only public sector schools, colleges and a university were chosen. A sample of hundred teachers/lecturers/professors was selected from these institutions. Two equations were estimated using the Ordinary Least Square method. Log linear functions were used to estimate both the equations. The first equation uses the number of years of schooling, experience and experience squared as the three independent variables. Its result shows that an additional year of schooling increases a teacher’s monthly income by 14.2 % (which is higher than the previous studies) the additional year of experience increases the income by 7.4 %. All the coefficients are highly significant. The second equation uses six dummy variables to represent each completed level of education instead of the number of years of schooling, besides experience and its square. Its result shows that with every increase in the education level there is a substantial increase in the monthly earnings. Seven out of eight coefficients are highly significant. Thus the study concludes that Higher Education plays an important role in enhancing the earnings of women teaching at public sector educational institutions in Pakistan, besides personality building.