Do Private Schools Produce More Productive Workers?(Human RESOURCE Development) (Report‪)‬

The rapid growth of private educational institutions in the country and positive response of the parents in sending their children to these institutions is important developments in this sector. It will affect the health of education both positively and negatively. The impact of these institutions on the earnings of workers is one of the outcomes of these institutions. This paper explores the role of such institutions for workers in receiving higher wages. For this purpose the Pakistan Integrated Household Survey data 199596 is used. It uses earnings functions to for the study of the impact of private school attendance on earnings. It not only compares the earnings of private school attendees with public school attendees but also decomposes the earnings into two parts i.e. due to endowment and due to structure of payment. The results show that private school attendees receive higher earnings in the labour market compared to those who attended government run schools in the past. The higher earnings for private school graduates are the reflection of quality and skills which workers accumulate by attending these schools. The result of the study also shows the reduction in the incidence of the discrimination against female workers in the labour market. The decomposition analysis suggests that private school attendees not only benefit from superior human capital endowment but also due to the structure of the payment. Major players for these high earnings differential for private school graduates are the human capital factors (education and experience). These factors outweigh the effect of other factors included in the analysis. The small sample size is however one of the limitations of the study. I. INTRODUCTION