MICROECONOMETRIC ANALYSIS OF PRIVATE RETURNS TO EDUCATION AND DETERMINANTS OF EARNINGS‪.‬

Byline: MUHAMMAD AFZAL Abstract. This paper attempts to identify the key determinants of earnings of the employees in institutions of general education in Lahore District (Pakistan). A sample of 3358 teaching and non-teaching employees of institutions (universities, colleges, schools) has been gathered in 2009 through a questionnaire technique. The main objective of this research work was to explore the major factors that affect individual's earnings and to estimate the private financial returns to education by different levels of education. The factors that positively and significantly contributed to earnings of all, university, college and school respondents were respondent's education, age, experience, occupation, gender, working hours, spouse education, family background and family status. The results of this study reveal that private financial returns to education vary with the level of education.