Gender Disparity in Economic Returns to Higher Education: Evidence from Private Formal Sector of Bahawalpur (Pakistan)

Abstract

The focus of the study is to investigate the gender disparity in returns to higher education in formal sector of Bahawalpur Division (Pakistan). A sample of 430 individuals is interviewed using a well structured interview schedule by convenient sampling. We divided it into 215 males and 215 females and apply a decomposition analysis proposed by Blinder (1973) and Oaxaca (1973). Ordinary least square method is applied to examine the gender disparity in wage returns to higher education. Findings reveal that at higher levels of education (i.e. post graduate) in private sector male’s labor market returns are higher than female labour market returns. But at graduation level female’s earning are higher than males. Number of dependents and marital status both have negatively affected the earning of females as compared to males. Females living in rural areas have been found to be more disadvantaged in terms of earnings as compared to males. On the bases of the results we concluded that there exists a gender disparity in wage returns to education in Bahawalpur Division