DefinePK

Abstract

Education and training can reduce the wage differential in labor absorbed by various sectors in Punjab. This paper investigates the nature of wage differential in agriculture, industry and services sector of Punjab. Using the Oaxaca-Blinder decomposition method and OLS estimation, this paper identifies the wage differential through age, education, gender, marital status, region and training. This paper provides the wage differential decomposition at overall provincial and disaggregated at divisional level. The study found that wage differential exists across sectors in terms of productivity and discrimination, which can be reduced through increase in education and vocational training. This study also found that vocational training benefit industrial workers more as compared to the workers in agriculture and service sector.