Interpreting the Sustainable Development of Human Capital and the Sheepskin Effects in Returns to Higher Education: Empirical Evidence from Pakistan

According to poststructuralists, workers with higher level of education and possession of potential experience are supposed to have higher wages. Yet, there are plausible questions that arise as to what levels of education or work history are needed for the enhancement of wage discrimination. Additi...

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Bibliographic Details
Published in:Sustainability 2020-03, Vol.12 (6), p.2393
Main Authors: Liu, Zhimin, Memon, Aftab Ahmed, Negussie, Woubshet, Ketema, Haile
Format: Article
Language:English
Subjects:
Cognition & reasoning
Cognitive ability
Earnings
Education
Employers
Employment
Environmental effects
Graduate studies
Heterogeneity
Higher education
Human capital
Industrialized nations
Intellectual capital
Labor market
Linearity
Productivity
Scholars
Studies
Sustainability
Sustainable development
Theory
Wages & salaries
Workforce
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Summary:According to poststructuralists, workers with higher level of education and possession of potential experience are supposed to have higher wages. Yet, there are plausible questions that arise as to what levels of education or work history are needed for the enhancement of wage discrimination. Additionally, the outcomes arising from rehashing years of schooling are worth considering. We used a several methods, employing the administrative Household Integrated Economic Survey (HIES) data from Pakistan without ignoring environmental effects. Our estimated results support the conventional assumptions of linearity of log-wage. First, we found substantial returns for postgraduate diploma holders in both public and private sectors, even after controlling the individual’s heterogeneity. Second, we did notice a significant divergence in return to low-level education (LLE) and job history. Third, rehashing years of education may create suspiciousness regarding the lack of competence. Our results suggest that continuous investment in human capital toward postgraduate diploma may result in higher premiums.
ISSN:2071-1050
2071-1050
DOI:10.3390/su12062393