The Economic Returns to Higher Education: Evaluating Wage Premiums and Labor Market Outcomes Across Disciplines in Punjab, Pakistan

Abstract

This study examines the economic returns to higher education in Punjab, Pakistan, by evaluating wage premiums and labor market outcomes across various academic disciplines. Using primary survey data from 1,000 university graduates and secondary data from the Pakistan Bureau of Statistics (PBS) and the Higher Education Commission (HEC) of Pakistan, the study analyzes wage differentials and employment rates across STEM (Science, Technology, Engineering, and Mathematics) and non-STEM fields. The results indicate significant variations in wage premiums, with STEM fields consistently yielding higher returns compared to non-STEM fields. The findings also highlight the impact of demographic factors such as gender and location, as well as labor market conditions, on wage outcomes. This research contributes to the ongoing debate on the value of higher education and provides insights for policymakers, educators, and students in Punjab.