ASSESSING THE INFLUENCE OF EDUCATION ON INCOME IN NEPAL

Abstract

This research will make a valuable contribution to the existing body of knowledge on the impact of studies on income levels, particularly in the context of Nepal. By utilizing a Semi-log multivariate regression model with data from the Nepal Labor Force Survey, this study offers empirical insights into the relationship between studies and earnings. In addition to academic qualifications, various other factors such as experience, age, training, and gender play a role in determining income levels. The findings reveal a positive correlation between studies and earnings, with a 16% increase in wages on average for each level of studies attained. Moreover, experience in the same field also has a significant impact on earnings, with an 11.53% increase in log monthly earnings for each level of experience gained. Interestingly, the study found that training does not have a statistically significant effect on income levels. The low R-squared value indicates that other qualitative factors, such as individual ability and contextual elements, might also affect earnings, pointing to potential areas for further investigation. This study has two key implications: it can help policymakers make informed decisions about studies budget allocations, and it can also encourage individuals to pursue higher studies.