The returns to education in Bhutan: employing a pseudo-panel approach
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2018
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2561
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eng
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64 leaves
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b203127
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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
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National Institute of Development Administration. Library and Information Center
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Kencho _ (2018). The returns to education in Bhutan: employing a pseudo-panel approach. Retrieved from: http://repository.nida.ac.th/handle/662723737/4043.
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The returns to education in Bhutan: employing a pseudo-panel approach
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Abstract
In view of education as a doorway to the economic well-being of individuals and nation, the Government of Bhutan confers top priority to the development of education sector by allocating the highest share of annual budget for the last several years. However, despite government bestowing apex precedence to education sector, there are no explicit empirical studies carried out to ascertain private returns to education in Bhutan. Thus, this study aims to investigate the determinants of earnings and estimate returns to education for Bhutanese workers by employing pooled regression models and a pseudo-panel approach respectively. A pseudo-panel dataset was constructed from six repeated cross-sectional labor force surveys from 2010 – 2015 for workers born in 1955 – 2000. The returns to education were estimated for two-year and three-year birth cohorts. Additionally, the OLS regression using data on individuals was employed in this study for the comparative purpose. The study shows that the earnings of males exceed that of females, earnings of rural workers exceed that of urban workers, and the earnings of divorced workers exceed that of married ones whereas the single workers earn fairly lower than their married counterparts. Furthermore, this study affirms work experience of individuals as an important determinant of earnings in Bhutan. This study also shows that the OLS estimated returns to education is approximately 9% whereas the returns from pseudo-panel estimations are 21% for both two-year and three-year birth cohorts suggesting a downward bias in the OLS estimation.
Keywords: returns to education, pseudo-panel approach, Bhutan, labor force surveys
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Thesis (M. Econ.)--National Institute of Development Administration, 2018