<p>This research estimates nonlinear gender-specific returns to education in Pakistan and also examines how internal migration affects these returns. We modified the log-earning equation by introducing an interaction term of education and its square with gender that allows the slope and the curvature of returns to vary across gender within a single econometric specification. Empirically, we used Pakistan Social and Living Standards Measurement (PSLM) 2019–20 survey data. Our results strongly support the convex gender-specific returns to relationship. Although women face a substantial baseline earning penalty at low education, their marginal returns to additional education are larger and more rapidly increasing than men’s, indicating that earning gains increases significantly with education for women. Furthermore, compared to rural–rural migration each type of migration is associated with significant earnings gains, reinforcing the role of location and mobility in mediating the payoff to education. The findings have important policy implications, that is promoting female progression into secondary and tertiary education, and facilitating productive internal migration can enhance both equality and earning gains.</p>

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How Education Pays: Gendered Nonlinear Returns and Internal Migration in Pakistan

  • Farrukh Mahmood,
  • Robert M. Kunst

摘要

This research estimates nonlinear gender-specific returns to education in Pakistan and also examines how internal migration affects these returns. We modified the log-earning equation by introducing an interaction term of education and its square with gender that allows the slope and the curvature of returns to vary across gender within a single econometric specification. Empirically, we used Pakistan Social and Living Standards Measurement (PSLM) 2019–20 survey data. Our results strongly support the convex gender-specific returns to relationship. Although women face a substantial baseline earning penalty at low education, their marginal returns to additional education are larger and more rapidly increasing than men’s, indicating that earning gains increases significantly with education for women. Furthermore, compared to rural–rural migration each type of migration is associated with significant earnings gains, reinforcing the role of location and mobility in mediating the payoff to education. The findings have important policy implications, that is promoting female progression into secondary and tertiary education, and facilitating productive internal migration can enhance both equality and earning gains.