Impact of Education Mismatch on Earnings: Evidence from Pakistan’s Labor Market

Henna Ahsan
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Henna Ahsan: Pakistan Institute of Development Economics

No 2024:1, PIDE-Working Papers from Pakistan Institute of Development Economics

Abstract: During the last 20 years developing countries like Pakistan heavily invested in their education sector to increase enrollment at primary, secondary and tertiary levels to boost their human capital. However, in the presence of poor governance institutions, stagnant labor markets and low educational quality, these additional years of schooling do not necessarily translate into enhanced human capital. It has been argued in literature that Human Capital Model based on Mincer Earning model produces biased results as a mismatch of education exists in the labor market. Therefore, present study investigated the impact of education mismatch on earnings by using the methodology of Duncan and Hoffman (1981). For this I used Pakistan Social Living Measurement PSLM (2019-20) data.

Keywords: Earnings; Labor Market; Mismatch Education (search for similar items in EconPapers)
Pages: 25
Date: 2024
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