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Impact of Training on Earnings: Evidence from Pakistani Industries


Submitted By doll
Words 4514
Pages 19
Vol. 5, No. 11

Asian Social Science

Impact of Training on Earnings: Evidence from Pakistani Industries
Zainab Javied Fatima Jinnah Women University, Rawalpindi E-mail: Asma Hyder (Corresponding author) Assistant Professor NUST Business School, Islamabad E-mail: Abstract Training and skills development play a vital role in individual’s productive capacity and are integral part of Human Resource Development (HRD). This study aims to examine the role of training in determination of wages. By utilizing the cross-sectional data from Labor Force Survey 2005-06, results have shown that training is not significant in the determination of wages, which shows the poor quality of training in the overall economy. Results were obtained by Ordinary Least Square (OLS) technique. However, schooling and other demographic variables have expected signs and magnitudes. The recommendations of the study based on empirical findings are toward technical education and vocational training institutions; they should ideally have to devise their technical education and vocational training exactly according to the requirements of industry. Empirical results also emphasize to improve the quality of training. Keywords: Wages, Investment in human capital, Training, Cross-section data, Industries, Developing country 1. Introduction Training in general and skills development in particular, not only play a vital role in individual, organizational and overall national economic growth but are integral part of Human Resource Development (HRD). Empirical literature on the subject topic suggests that human capabilities can be improved through better education and training [Haq (2002)]. Education and training are indispensable instruments for improving labour mobility, adaptability and productivity, thus contributing to enhancing firms’ competitiveness

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