Returns to education in Nepal: an analysis of educational attainment, employability and social mobility

Amrit Thapa and Moe Izawa

Education Economics, 2024, vol. 32, issue 5, 649-664

Abstract: This study examines the impact of educational attainment on employment and earnings in Nepal. Using the Nepal Labour Force Survey 2017–2018 cycle, we employ an extended earnings function derived from the foundational Mincer equation to estimate returns to education. The results underscore the overall positive impact of education (1.76, 3.73, 7.68 and 11.00% increase in earnings by primary, secondary, bachelor’s and master’s degrees, respectively), which is lower than the average observed in other low– and middle– income countries, except in higher education. The results also indicate persisting disparities for females and disadvantaged groups. The study emphasizes the need for strategic interventions, improved educational infrastructure and inclusive policies to foster equitable opportunities.

Date: 2024
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DOI: 10.1080/09645292.2024.2351882

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