Role of education and training on labor earning

Abstract

This study aims to identify the relationship between wage and education, training, and experience among employed workers in Nepal. The study used the cross sectional data of 2017 Nepal Labor Force Survey. A total of 6264 employed workers between the ages of 25 to 65 were studied in the survey. The labor market of Nepal was found dominated by less educated workers with a high drop out from school education. We employed Mincer earning function with dummies of interest to explore the relationship. Rate of return to additional year of schooling was found lower than the South Asian average. We also found the average returns and return to schooling to vary across demographics. These results suggest that our National concern have to direct to ensure the quality of education and reduce drop out from school education.