The Economic Returns to Schooling in Gilgit-Baltistan: Evidence on the Impact of Years of Education on Household Income.

Abstract

This study examines the economic returns to schooling in Gilgit-Baltistan by analyzing the impact of years of education on household income. Adopting a quantitative, explanatory research design, primary data were collected from 327 households using a structured questionnaire administered through a simple purposive sampling technique. To ensure inclusivity, respondents who were unable to read the questionnaire were assisted through oral explanations in the local language. Household income, measured as total monthly income from all sources, was transformed into its natural logarithmic form to address skewness. Grounded in human capital theory and the Mincerian earnings framework, the study employs Ordinary Least Squares regression while controlling for key demographic, household, and employment-related factors. The findings reveal a strong and statistically significant positive relationship between years of schooling and household income, indicating that additional education substantially enhances household economic outcomes. The results further highlight the roles of age, household size, gender, employment status, and place of residence in shaping income levels. Overall, the study provides region-specific evidence to inform education and development policy in Gilgit-Baltistan.