Effects of Human Capital on Farm and Non-Farm Productivity and Occupational Stratification in Rural Pakistan

Takashi Kurosaki and Humayun Khan

Hi-Stat Discussion Paper Series from Institute of Economic Research, Hitotsubashi University

Abstract: This paper investigates the effects of human capital on productivity using micro panel data of rural households in the NorthWest Frontier Province, Pakistan, where a substantial job stratification is observed in terms of income and education. To clarify the mechanism underlying this stratification, the human capital effects are estimated for wages(individual level) and for self-employed activities(household level), and for farm and non-farm sectors. Estimation results show a clear contrast between farm and non-farm sectors - wages and productivity in non-farm activities rise with education at an increasing rate, whereas those in agriculture respond only to the primary education.

Keywords: human capital; returns to education; non-farm employment; self-employment (search for similar items in EconPapers)
JEL-codes: J24 O12 Q12 (search for similar items in EconPapers)
Date: 2004-11
New Economics Papers: this item is included in nep-agr, nep-dev and nep-lab
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:hst:hstdps:d04-46

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