Economic Returns to Education for Employees in Public and Private Organizations

Abstract

Education is considered as the key to success. The development of a nation is based on its skilled manpower. The literacy rate for men is approximately higher than women all over the world. The literacy rate is higher in developed countries as compare to developing countries. It is generally believed and empirically proved that educated people contribute positively to the growth of a nation. The present study estimated the economic returns to education for employees working in public and private organizations. Cross-sectional data were collected through a well-structured questionnaire. Descriptive and OLS techniques were employed to find out the results. The results provide ample evidence in favour of economic returns to education. Therefore, the study concluded that education has a positive and significant impact on the economic returns of employees’ earnings. Other socioeconomic variables such as age, occupation, gender, and job satisfaction level also significantly impacted economic returns. It is suggested that government should provide good educational facilities to the people. Consequently, they will contribute to the employee’s incomes and would lead to reducing poverty levels.