Human Capital, Productivity, and Stratification in Rural Pakistan
نویسندگان
چکیده
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 selfemployed activities (household level), and for farm and nonfarm sectors. Estimation results show a clear contrast between farm and nonfarm sectors — wages and productivity in nonfarm activities rise with education at an increasing rate, whereas those in agriculture respond only to the primary education.
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