Education and earnings in transition: The case of Lao

This paper is a study on the returns to education in Lao, a Country that has been largely neglected by the published literature. The authors found that the private rates of returns to education have risen significantly with economic transition. In particular, returns for young workers are considerably higher than for older workers. Although large earnings premiums are generally received by workers with high levels of education, the most profitable investment in education for a large number of paid employees is still the primary level. Moreover, there are the significant public-private sector wage differentials. The research findings have important implications for public sector salaries and the financing of education in Lao.