Private Returns to Education: A Study on Bhutan
This paper attempts to estimate the private rate of returns to schooling for workers in Bhutan, using the Mincerian
earning framework with pooled regression models. The study uses six waves of Bhutan’s labor force survey data extending
from the year 2010 to 2015 for those workers born in the year 1929 to 2000. The results show one extra year of schooling
increased an hourly real wage by around 9 percent, and that one additional year of work experience increased an hourly real
wage by around 5 percent. This indicates that the private returns to education were higher when accomplishing one additional
year of schooling in comparison with gaining one additional year of work experience in Bhutan.
Keywords - Mincerian Earning Framework, Pooled Regression, Private Returns, and Real Wage.