The Analysis On The Wage Effect Of Vocational Education In Nepal

Labo r market returns depend on the level o f education as well as ex perience of the labors.Thou gh education is argu ed to be the ke y d eterminant of wage rate,other factors such as the sector of emplo ym ent,gender of the emplo yee,work ex perience and also m atter.This paper investigates the returns from vocational education,gender,age,years of schoolin g and ex perien ce b y ex amining the wag e structure in Nepal.The Mincerion wage equation has been used to anal yz e such impact b y utilizing t he recent labor fo rce survey d ata of Nep al.The quantile regression is emplo yed in this paper to tackle the het erosced asticit y problem.Quantile regression reveals the relationship of the variabl e with the referen ce variable in each qu antile.The data is taken from Nepal La b or Force surve y2017/18（NLFS III）.The 8172 data samples are selected for the stud y.Overall,vocational education has shown the positive rel ationship with the salar y of the p erson.It h as found that this variable is found hi ghl y si gnificant at50^{t h} and 75^{t h}quantile i.e 0.50 and 0.75.Person not having vocat ional education as a reference,the person who has taken vocational education,salary is increas es b y 4.3%,4.1%,6.06%,6.37%,3.97%at 0.10,0.25,0.50,0.75,and 0.90 as compare to the person not having vocation al education.On the basis of the afo rementioned findings,this paper has demon strated that making a large invest ment in the TVET pro grams,provisions of low-cost trainin g and scholarships,and rural-bas ed trainin g institutions will he lp the youth of the country.Vocational education and TVET is essential for the developing countries like Nepal.TVET in Nepal has remained a deprived s ector in the current s ense,and it needs action to introduce significant improvements.This paper also discusses the vocational education s ystem around the wo rld.In terms of fair access to technical and vocational education,the vast majority of students are slipping behind.To recap,the main ex planations for dispro portionate access to TVET:Under investment,costl y and long-term s chooling,geo graphical di sparities,and a shortage of trainee scholarships and stipends.These factors are not coincidental;they are part of a bro ader,s ystemic trend,namel y th e gen eralization of th e state and econom y in genera l,as well as education in particular.To pro mote economic growth,the formatio n of national wealth,and povert y reductio n,it is critical to resolve the problems of technical and vocational training.It is ver y su ccessful and essential for the survival of develop ed countries like Nepal.The TVET econom y must be l ab or market relevant,fair,effective,and of high qualit y in order for it to be sustainable and competitive.As a result,dev eloping a st able economic climate that encourages busines s growth and b oosts the econom y in gen eral is a requirem ent of financing agen cies as well.This should be taken into account in order to i mprove TVET.