Middle-East Journal of Scientific Research 16 (11): 1542-1547, 2013
ISSN 1990-9233
© IDOSI Publications, 2013
DOI: 10.5829/idosi.mejsr.2013.16.11.12046
Corresponding Author: Masood Sarwar Awan, Department of Economics,
University of Sargodha, Pakistan.
1542
Regional Diversity, Human Capital And Earning Nexus In Pakistan
Masood Sarwar Awan, Muhammad Waqas and Muhammad Amir Aslam
1 1 2
Department of Economics, University of Sargodha, Pakistan
1
Department of Social Work, University of Sargodha, Pakistan
2
Abstract: This paper investigates human capital and socio-economic factors in order to find out the personal
earnings of workers in Sargodha District. The Multiple Indicator Cluster Survey data 2007-08 of Punjab has been
used. Education and age are used as variables for human capital whereas, gender, age, age square, different
classes of age, marital status, area, different education level, employment status and tehsil dummies are used
to investigate the determinants of personal earnings of the workers of Sargodha district. Ordinary least square
results explore that education and age plays an important role in the determination of personal wage. Moreover,
as the level of education increases the returns to each year of education also increases. Male workers earn more
than female which indicates gender discrimination in the labour market. The most productive age is 40-45 years.
The individual belongs to rural areas earn more than urban counterparts. When we analyzed the earning pattern
in the context of different occupational classes the magnitude of agricultural sector is high. Hence, these facts
highlight the importance of a district level growth/economic strategy because the dynamics and geography of
each district is different from the other and the earning pattern of a particular district is closely aligned with its
demographic conditions.
JEL Classification: I25, R12
Key words: Human Capital New Growth Strategy Sargodha Earnings
INTRODUCTION firstly puts emphasis on thinking of the new role of cities
Increased productivity, fortified internal markets and towards the development approach while focusing on the
community-led development considered as necessary software (talent, technology and tolerance) of cities.
conditions for country’s development. The “New Growth The individual prefers to do work in that sector where
Strategy” (NGS) becomes a table talk in Pakistan among wage rate/earnings are high. Education, experience etc.
researchers, policy makers and politicians. This approach increase the individuals earning. Several studies highlight
puts emphasis to increase productivity, innovation and that there is positive relationship among earnings and
entrepreneurship in Pakistan. It stresses to encourage schooling and confirmed the significance of education in
good governance, improve the structural capabilities of economic and social spheres. Human capital investment
cities and transform land entitlements in which economic (investment in health and education) heaves labour
efficiency is gained. Provision of facilities and productivity and provokes an efficient allocation of
encouragement of interactions among people at city level resources [1]. The well-being of the family is dependent
is one of the main features of this strategy. Every area has on the earnings of the members. The inequalities among
its specialties. The need is to highlight these specialties households significantly increase in the case of earning
to achieve the collective productivity gains. There is a disparities. There are several reasons behind personal
need to identify the areas and to invest in their specialty income inequality. Personal income may be unequal due
with the help of hardware (e.g., infrastructure) and to the differences in educational status, experience, skills
software (innovation and better management). The NGS etc. Therefore, individuals invest in human capital in order
as engines of growth. Secondly, there is a need to move