Returns to Education: The Case of Nepal
Priyanga Dunusinghe

For many people in developing countries, education is one of the few hopes for social mobility. One of the key determinants of investment in education is its rate of returns. Yet, this key piece of information is missing in some developing countries. While correcting for sample selection bias, we estimate returns to education for Nepal - a low income country with poor educational attainments. Moreover, heterogeneity of returns to education in the labour market is explored using few sub-samples. Our estimates suggest that private returns to education are around 7 per cent for an additional year of schooling in Nepal and returns are higher for upper-secondary education level compared to the other levels. Interestingly, returns to education for females remain higher than that of for the men. Our findings are consistent with that of the previous studies on returns to schooling in Nepal as well as in other developing countries.

Full Text: PDF     DOI: 10.15640/jeds.v9n1a1