Abstract
Education is the most important factor which plays a leading role in human development. Gender disparity in education is an obstacle for sustainable growth and poverty reduction. It is empirically established fact that provision of education to female can make them socially dynamic and economically productive. The dualism in education is one of the causes of wage differential and income inequality. Educational inequality, in Pakistan, though declined but remained a far reaching goal to meet the MDG target for 2015. Available estimates indicated the high incidence of inequality in Pakistan and very little is known of the causative factors. The changes in the earning structure of the labor force occur due to income distortions which arise from education patterns as well as from the way the labor market compensates education within a country. Another important determinant, which adds to persistent inequality, is gender disparity. The paper aims at demonstrating how increased education helps to choose better profession and narrow the income gap, by using gender disaggregated data from the household surveys of Pakistan. In order to find out the effect of different factors on earning inequality, this study used earning function and occupational choice model. The estimated Mincerian earning equation showed that extra year of schooling increased the income for male and female population, while it is stronger for the latter bringing a reduction in income inequality between males and females. Education also helps people choose ‘better earning’ occupation, and for most provides the chance to be employers and self employed.
Masood Sarwar Awan, , Syed Umar Farooq,, Rafi Ullah Bila. (2008) Educational Attainment, Occupational Choice and Poverty: A Gender Perspective from Pakistan, Journal of Managerial Sciences, Volume 2, Issue 1.
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