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Effects of Human Capital on Farm and Non-Farm Productivity
and Occupational Stratification in Rural Pakistan



Takashi Kurosaki and Humayun Khan


November, 2004


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Abstract
TThis paper investigates the effects of human capital on productivity using micro panel data of rural households in the NorthWest Frontier Province, Pakistan, where a substantial job stratification is observed in terms of income and education. To clarify the mechanism underlying this stratification, the human capital effects are estimated for wages(individual level) and for self-employed activities(household level), and for farm and non-farm sectors. Estimation results show a clear contrast between farm and non-farm sectors - wages and productivity in non-farm activities rise with education at an increasing rate, whereas those in agriculture respond only to the primary education.
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Copyright (C) 2003 by Institute of Economic Research.All rights reserved.